Comment Re:Dumb managers manage dumbly (Score 4, Informative) 53
When prices dropped, the sites automatically canceled existing bookings and rebooked customers at lower rates. Hotels lost already-booked revenue whenever they reduced prices to fill empty rooms
Why penalize your best customers who reserve the longest in advance? Personally, I hate spending time hotel shopping, but I do, because the price and quality can vary greatly and it's the only way to get a good price and a good room. But it is dumb management policy because it forces your customers - your best customers - to shop around every time they are looking for a room. Instead, I would be happily loyal to a chain that had uniformly good quality (not luxury, just good - clean, working pool, no bedbugs, hot breakfast) and guaranteed the best price (and they will lower my price if they decide to lower the price to "fill rooms"). Done. Why are managers so shortsighted and dumb?
Did you read what you quoted? Those are the worst customers.
The hotel needs to book X rooms at $Y to break even on a given day. They know their average room-fill rate, and they build their asking price based on that, with the target profit on top, getting $Z. A customer books a room in advance, and agrees to pay $Z.
All is well so far.
Now, as the day approaches, the hotel sees that they are not booking to capacity. So they offer the remaining rooms at below $Z and possibly even below $Y because empty rooms bring zero revenue.
You can view that the long-booked customer is getting a poorer deal than the last-minute booker. Okay. Too bad. You agreed to the terms you agreed to. And you got the guarantee that your room is held, where someone who waits until closer to the date may not get a room. It's completley fair.
The problem comes in when a customer uses a third-party booking company that cancels and rebooks, artificially replacing foundational income that was used to determine when discounts could be issued, replacing a $Z consumer with something less. That act undermines the hotel's profitability and stability.
I don't know why booking anywhere but a hotel is even a thing. Makes no sense to me whatsoever for a third party site to generate a discount. And playing scummy games that erode the predictability necessary to operate something like a hotel or restaurant... also not cool. I don't see how the hotel's actions are in the wrong.
I find it illuminating that your demands are simply the best quality and the lowest price. Easy-peasy, right? You're part of the problem.