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Thread: Hotel Pricing Algorithms

  1. #1
    Master Skier's Avatar
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    Hotel Pricing Algorithms

    Earlier today I was looking to book a hotel in london for 2 nights in December. I usually stay in the Marriott County Hall but on this occasion the closest hotel to where I needed to be was a Premier Inn. Though not a hotel I'd normally consider the ease of its location led me to look at availability. Available at £250 a night for a business room i.e. one with a desk I can work at in the evenings!! What? For a Premier Inn at plenty of notice, I think not. I looked at the LaLit hotel just south of Tower Bridge - somewhere I've stayed several times previously and like, still close enough to walk to where I need to be and 5 star. £240 a night for a superior room with a desk (called a Senior Classroom). How on earth can the Premier Inn justify its prices at over a month in advance?

  2. #2
    Master
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    It's the business room, so they think businesses will just pay it. Normally the standard rooms have somewhere I could work from when needed.

    Sent from my VOG-L29 using Tapatalk

  3. #3
    Master
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    Will be linked to their availability for that night. Fewer rooms you have to sell, the closer you come to rack rate. Also depends on booking history for that night and what is on in town.
    Speaking as a retired hotel GM.

  4. #4
    Journeyman
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    I've worked in, managed, owned and consulted for hotels for nearly 2 decades now.
    Every hotel and chain has their own pricing strategy. Some pin some types of rooms to the rates of the same type at another hotel. Some just raise rates when inventory goes down. Some do it by gut feel. Some set some rooms expensive as a pricing/premium signal.
    I don't know whether the one you're referencing are part of a chain, franchised, independent, etc, but that also has an impact.

    From time to time it's hard to find the logic that the particular person who set the rates uses.

  5. #5
    Master
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    Quote Originally Posted by Skier View Post
    Earlier today I was looking to book a hotel in london for 2 nights in December. I usually stay in the Marriott County Hall but on this occasion the closest hotel to where I needed to be was a Premier Inn. Though not a hotel I'd normally consider the ease of its location led me to look at availability. Available at £250 a night for a business room i.e. one with a desk I can work at in the evenings!! What? For a Premier Inn at plenty of notice, I think not. I looked at the LaLit hotel just south of Tower Bridge - somewhere I've stayed several times previously and like, still close enough to walk to where I need to be and 5 star. £240 a night for a superior room with a desk (called a Senior Classroom). How on earth can the Premier Inn justify its prices at over a month in advance?
    I'd give the Marriott grosvenor square in Mayfair a try if you fancy a change from County hall. Exeutive lounge is very friendly. It's also a bit more cost effective than County Hall in my view.

    B

  6. #6
    Master Skier's Avatar
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    Quote Originally Posted by Brian View Post
    I'd give the Marriott grosvenor square in Mayfair a try if you fancy a change from County hall. Exeutive lounge is very friendly. It's also a bit more cost effective than County Hall in my view.

    B
    If you're referring to the Marriott Grosvenor House opposite Hyde Park, I've stayed there many times. I took my niece (13) and nephew (12) there a year or so ago (paid for on Marriott points) for a weekend in London and they were speechless when they walked into the room. We had a fantastic weekend.

  7. #7
    Master
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    Quote Originally Posted by Skier View Post
    If you're referring to the Marriott Grosvenor House opposite Hyde Park, I've stayed there many times. I took my niece (13) and nephew (12) there a year or so ago (paid for on Marriott points) for a weekend in London and they were speechless when they walked into the room. We had a fantastic weekend.

    I also use my points for the Grosvenor house:-) I did mean the Grosvenor square Duke Street Mayfair. If you need to nip to the shops its about 100 metres. Theres a good family italian nearby.

    The grosvenor house is a JW marriott.

    B

  8. #8
    Master petethegeek's Avatar
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    Oddly enough there happens to be a piece about 'surge pricing' on the BBC website this morning.

  9. #9
    Grand Master hogthrob's Avatar
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    Could it be high demand due to it being the work Christmas party season?

    If you don't mind, ould you post the hotel and date you searched for, so the rest of us can see what prices we're offered? Might be an interesting comparison ...

  10. #10
    Craftsman
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    Not only supply and demand but dynamic pricing with cookies. I've see a Travelodge in Chichester for £250 a night because there's something on at Goodwood. Similarly airlines will vary the price according to demand. I booked a one way ticket from Gibraltar to London for £34. Next day, went back on the website for two more tickets and they were £350 each!

    Today, looked at tickets to Buenos Aires, price was £810 return. I looked an hour later and it was over £1,000.

  11. #11
    Master Skier's Avatar
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    Quote Originally Posted by hogthrob View Post
    Could it be high demand due to it being the work Christmas party season?

    If you don't mind, ould you post the hotel and date you searched for, so the rest of us can see what prices we're offered? Might be an interesting comparison ...
    I'll tell you that the two hotels were the Premier Inn Aldgate and LaLit but I'm not going to be specific on the dates.

    I've noticed this previously with airline ticket pricing and experienced it when trying to book the Marriott County Hall. From my home computer they wanted over £700 for one night. When I looked using a VPN (set to Chicago) and didn't log-in I was offered the same room for £340 a night. I've started using VPNs, anonymised browsers and other techniques to get around the pricing algorithms and use of cookies to inflate prices.

  12. #12
    Grand Master thieuster's Avatar
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    Quote Originally Posted by Skier View Post
    I'll tell you that the two hotels were the Premier Inn Aldgate and LaLit but I'm not going to be specific on the dates.

    I've noticed this previously with airline ticket pricing and experienced it when trying to book the Marriott County Hall. From my home computer they wanted over £700 for one night. When I looked using a VPN (set to Chicago) and didn't log-in I was offered the same room for £340 a night. I've started using VPNs, anonymised browsers and other techniques to get around the pricing algorithms and use of cookies to inflate prices.
    ^^^ this ^^^

    Same goes for airline tickets.

    Sites like Trivago tend to adjust their prices (up) when you visit them for a second time. Furthermore, hotels - on their own site- do not advertise with lower rates than those 'booking sites'. Always call for their best price and negotiate.

  13. #13
    Master
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    Always search for prices in a "private" window so that you don't activate cookies on your machine.

  14. #14
    Craftsman hyl1987's Avatar
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    Quote Originally Posted by tixntox View Post
    Always search for prices in a "private" window so that you don't activate cookies on your machine.
    Interesting tip. I never quite put cookies down to being used in hotels/airline pricing. The amount of information we give away for free on the internet is just astonishing!

  15. #15
    Master Maysie's Avatar
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    Quote Originally Posted by hyl1987 View Post
    Interesting tip. I never quite put cookies down to being used in hotels/airline pricing. The amount of information we give away for free on the internet is just astonishing!
    I have had the same thing so agree this does seem to happen.

    It constantly surprises me that there generally always seems to be a better deal to be had by booking through an intermediary rather than by booking direct with the hotel in question.

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