Hotels - It pays to shop around

Discussion in 'Travel Insider Tips' started by chrisb, Oct 27, 2006.

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  1. chrisb

    chrisb Active Member

    Apr 10, 2005
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    Perth
    Billy Joel is in town in two weeks, and I was looking for a room at the venue (Burswood Resort/Casino). Yeah I know, I was dreaming. :)

    Anyway, I got the following prices per night -

    Burswood Resort Direct via Phone- $900
    Priority Club/ICHotels Website - $400
    Wotif - $400.
    ReadyRooms Website (Qantas) - $355.
    Qantas Holidays via Telephone - $246.

    I was completely stunned that Qantas Holidays ended up cheaper than all of the "last minute" websites, and the hotel direct. The only reason I called them is because I had a query about ReadyRooms bookings and the contact number is Qantas Holidays!

    So, It pays to shop around and don't just try the supposed "best value" discount places when you're after a hotel - even in your home state.

    Chrisb.
     

  2. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    That is a pleasant surprise and totally unexpected.

    I would never consider them as an option as I am single and normally travel alone. Unfortunately Qantas Holidays hotel room rates are mostly twin share and price per person.
     
  3. chrisb

    chrisb Active Member

    Apr 10, 2005
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    Perth
    Give it a go anyway - I was told $246, and it wasn't until most of the way through the booking that she asked if there was anyone else staying. There was so the receipt has been printed out as $123 per person. :|

    I really REALLY hate "per person" hotel rates, even when travelling as a couple. :mad:

    Chrisb.
     
  4. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    I haven't in the past, but after your post they have been added to the list of places to check for accommodation rates.

    I agree! I never quite understood this one. Maximising profits? They are alienating the majority of single travellers.
     
  5. chrisb

    chrisb Active Member

    Apr 10, 2005
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    Perth
    I think they just do it to create headline rates bundled with airfares which are per person.

    I tried to come up with other reasons, but I can't... it's a room, and i'm NOT sharing it with someone I don't know! :)
     
  6. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    It is the same with escorted tours around the world. Pick a tour and then add on 30%+ if you want a single room.
     
  7. Dave Noble

    Dave Noble Senior Member

    Oct 10, 2005
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    In these cases it makes perfect sense to price this way

    They price the holiday on a per person basis and then apply a discount if more than the number of people it is based on book the same room or surcharge if there is less than the number

    They are quoting a complete price for the package and not selling individual items individually

    Dave
     
  8. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    Dave I wasn't complaining just commenting.

    I would actually believe your story if the price of 3 people sharing a room was better than the $5/day reduction they offer on the price for 2 people sharing a room, whilst someone wanting a single room is charged 30%+ supplement on the tour price!

    I have been on these types of tours in the past and have found that people paying the single supplement get the worst rooms. Go figure....
     
  9. NM

    NM
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    Aug 27, 2004
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    To understand the price differences we need to undertand the way it is constructed.

    Say the room costs $100. Also included in the tour costs is breakfast and sometimes dinner. Say Breakfast costs $20.

    For the base price as twin-share, the actual cost to the tour company is then $140 for the room and two breakfasts. So that is then charged to you as $70 per person.

    Now if you want a single-occupancy, it is then $100 for the room plus $20 breakfast, making it $120 for a single person. That is an increase of $50 or 71% higher than the twin0share rate.

    Now for three people sharing, the hotel usually adds their own surcharge for the extra bed, linnen, towels etc. Lets assume that is an extra $10 on the room rate. So the total cost for 3 people is now $100 + $10 + 3 x $20 = $170. Share this between 3 people and its $56.67 each or just 19% less.

    Now if dinner is also included, at say $25 per person, the difference between twin and single is then even bigger than the difference between twin and triple occupancy. The costs for this example would be $145, $95 and $75 for the 1, 2 and 3 people sharing.
     
  10. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    NM I understand your point but that is not how it works in practice. Why? Because I have done the tours before and I have seen the difference between the single room and the double rooms. I would understand if the quality of the rooms was the same but they are not the same rooms yet the single person gets charged a supplement. I remember one room in Munich when I put my suitcase down and there was hardly any room to turn around.

    When I said earlier that there is a 30%+ single supplement on tour price it is actually something like $930 for 15 nights. More than $60/night extra for the room and yes including a useles continental breakfast (which to me is worth $1) and no dinner. Now I know for a fact that hotels do not rent rooms on a per person basis, except for a small fee providing a useless cot for a 3rd adult, so who is making the money here? Tour operators love single people more than anyone else.

    Enough ranting from me. If you want to sleep alone on an escorted tour then you have no choice other than to pay the supplement. Some tour companies will not let you share with someone else if you are travelling alone anyway, where as others have guaranteed share. Bottom line is I accept having to paying a single supplement.
     
  11. Dave Noble

    Dave Noble Senior Member

    Oct 10, 2005
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    That is factually incorrect. There are a lot of hotels which do quote prices in a per person basis ( typically outside of the major chains )

    Dave
     
  12. NM

    NM
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    I expect the tour company has a deal where they pay a per room rate and when it comes times to allocate people to rooms they look at the single traveller and say to themselves they can put that person in the smallest room since they are by themselves. Could you imagine if two peope were sharing that room in Munich and had to put two suit cases in there! I agree its not fare when the single person has paid such a premium price, but its gonna happen like that.
    You may not put an value on the so-called continental breakfast, but I am sure the hotel is charging the tour company for it. Its the forced inclusion of unwanted costs that keeps me away from such tours.
    Just be glad they don't use hotels that charge by the hour :oops: :oops: .
     
  13. GDSman

    GDSman Member

    Oct 18, 2004
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    Hobart
    Back to the original thread - hotel shopping is even more complex than air shopping. Even for major chains there are different distribution methods - real time connection via GDS or to some websites, allotment to a wholesaler like QF Hols and late availability inventory placed on an extranet site like Wotif.
    The result when combined with possibly poor revenue management practices is a variation in price and a difficulty in predicting just where the best price will be found for the consumer. Most large travel agent chains and online agents negotiate rates with hotels to protect against volatility. In the example here Chrisb has lucked out on QF Hols still holding some old discounted allotment when the hotel and other retailers are capitalising on the shortage in availability by revenue managing - read upping the price.
     
  14. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    Sorry Dave, I haven't come across any hotels that charge on a per person basis.

    I may have walked past one or two of these types of hotels. :oops:
     
  15. straitman

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    ... in which part of which town/city :?:
     
  16. oz_mark

    oz_mark Enthusiast

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    Walked past? Just one or two?

    Package pricing is one of those things which for me often seems to be in the realm of numerolgy. I have booked packages that have had airfares on air tickets being more that the cost of the whole package.

    With most packages, you are given a "run of house" room. For me that has varied from rooms the size of broom closets all the way up to three bedroom suites, so you just never can tell. When I book a package (which I haven't done for a while) I just have to accept the single supplement and have a good holiday :)
     
  17. maninblack

    maninblack Established Member

    Aug 14, 2006
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    Most packages through qantas holidays advertise the ROH rooms because they are cheapest but you can nearly always get a higher grade room when booking, of course you will pay more, but they are available, just ask. Qantas holidays can be very good value even for business trips as they often seem to have substantially cheaper airfares in the bundle.
     
  18. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    Transit hotels in Bangkok and Singapore. ;)
     
  19. straitman

    Moderator

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    ....and here I was thinking of something else entirely. How silly of me :!:

    Sorry :oops: :oops: :oops:
     
  20. markis10

    markis10 Veteran Member

    Nov 25, 2004
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    I would be making a claim on the following program if I was the OP:

    Lowest Internet Rate Guarantee <H2>

    </H2>Every hotel reservation booked through an InterContinental Hotels Group web site is guaranteed to have the lowest rate publicly available on the internet or IHG will match a lower rate under the following conditions:

    If you find a rate on a competing web site that is lower than the lowest rate shown on the 'Best Available' search of InterContinental Hotels Group web site, InterContinental Hotels Group will honor that rate for the nights for which the lower rate was found, plus give you an additional 10% discount off the lower rate found upon its verification by InterContinental Hotels Group.

    For the purpose of the Lowest Internet Rate Guarantee, a competing web site is defined as a web site that is not owned by InterContinental Hotels Group.

    Rooms on the other web site must be publicly available, viewable and bookable on the Internet at the time of verification.
     
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