Corporate Hotel Programs Becoming Meaningless

When airlines want to increase the fares, one of the things they do is cut capacity. Hotels cannot do that as their inventory is always the same. However, due to continuous yield management enhancements, hotels have become quite savvy in maximizing the revenue per room, especially during peak times. Those of us attending graduations, football games or events know that negotiated corporate rates disappear and the extension of exceptions and exclusions to cover longer periods kick in. So what's the point of the loyalty of the corporate hotel program if a traveler cannot take advantage of these "special" rates when they are needed. With the plethora of side deals with travel consortiums that anyone can tap into, companies do not have to meet minimum number of room commitments, and in addition can take advantage of lower rates in the off-peak periods that are well below some corporate rates. If you think airline pricing is wacky, rest assured that hotel pricing is wackier. Hotels have also taken a page from airlines in adding fees and charging for extra services wherever they can. Often, when they quote a rate, it is usually an amount plus tax and fees. Problem is some of those taxes and fees could easily be 20% or more, so a $300 rate could easily become a $400 charge for a one-night stay. So hotels really compete for your business only when they need you and they have lots of rooms to sell. The attitude shifts considerably when the occupancy rates get high. www.premieretravel.com

(Why would anyone pick the higher rate? Spell-check anyone?