Why hotel rooms change prices
I have found working at two hotels that people have no idea why hotel rooms are priced and why they fluctuate. Many seem to think its because we’re lying to them over the phone, we are not. Yes the prices lower when you called a week ago, and it is higher now for the same date. Why is that? There are a few reasons.
1. The hotel has less room inventory: this happens when something popular may be going on in the city or area or if it is a high travel time. Due to this the rooms get booked up, as the hotel has less rooms prices go up. Its prices based on demand, its how we make sure we make money. Our hotels don’t make much money when its a slow season so we lower our rates sometimes drastically so we can get some guests in. This is true when we have few rooms left, they get more expensive.
2. There is an event in town: often if there is a huge event like a concert, sporting event, major theatrical show, fair or festival the rates for hotels closer to these events may go up. This is because again, supply and demand. People are more willing to pay more for a room when they know they can be a block away from a huge game. This is why hotels far away from these events prices may not change much at all.
3. It is a weekend: weekend rates tend to be higher than weekday rates, this is because again supply and demand. More people, especially families, want to travel on the weekends.
4. Its a walk-in rate: walk-in rates are the rate that front desk agents are able to give people walking into the hotel without a reservation. They tend to be higher than if you make a reservation a day or two before, this is simply for protection of the hotel in this case. It is because some people who are walk-ins may end up damaging the room. Many walk-ins often want to pay in cash which most hotels (especially major chains) no longer accept especially from walk-ins. This is to protect our own rooms, employees and assets.
5. Taxes: sometimes taxes in a city or state may change between one year or another. If tourism or city lodging tax changes then all hotels much change their final prices too. This is out of our hands when it happens.
6. Number of People in room: if you are checking into a room with several people in it this will make the price go up for a few reasons, each person is more liability on us the hotel and after a certain number of people we can no longer allow you into the room. This is due to safety laws and fire codes. The exact number per room varies between states. In my state with 1 bed it is a max of 2 people and with 2 beds it is 4.
How can I ensure I get the best rates?
1. Loyalty Programs: as much as I know most people don’t like them if they are free to sign up for they do have their values. Often many hotel chains will offer members of a loyalty program the best available rate for the night they are booking. This ensures no matter what you are booking, it is the best rate you can get.
2. Booking a reservation in advanced: The farther ahead you book the room the better chance you have at getting better rates due to more rooms being available. This means the price hasn’t increased due to lack of availability.
3. Research events in the area: if the hotel is having a huge convention at it during the time you wish to be there and its not a convention you are going to, you may want to look at other nearby hotels. That event will cause prices to go up for non-attendees.
4. Book through the hotel not a 3rd Party: this sounds odd at first but hear me out. Third-party companies like Expedia, Orbitz, etc may look cheaper at first glance but there’s a lot of reading between the lines and into the fine print with them. Often they do not offer things like breakfast with the rooms, parking included, or other additional fees meaning there are going to be surprise charges to your personal card you did not realize. Also, they often only advertise the hotel’s higher end rooms but book mostly the hotels least expensive rooms. You may see images of our suites all over their page for our hotel but the rates they are offering is for a single queen rooms on the lower floors. Make sure if you do choose to book through a third party that you read the fine print and you read every part of what you are booking. Sadly if you make a reservation through them, we the hotel, cannot change it. Why? you made a contract with them. Meaning they have the power to change reservations and not us. We don’t even see how much you paid for the room, often we have not a clue what you were advertised or what you were charged. And if you wish to get a refund or cancel these rooms again, you paid them and so only they can do that for you. Further more with 3rd party, you are required at most chain hotels or big names to put down additional money per night for “incidentals”. Incidentals are the charges the third party did not cover this would include: parking, food, wifi/internet, streaming, movie rental and damages. So you will likely be putting down anywhere from 50 dollars a night to 200 dollars a night down for incidentals on hold at the hotel because you booked through that 3rd party. Meaning, you can have hundreds of dollars you can no longer spend on hold at your hotel because of the booking. Yes 3rd party can be great deals in some cases, I even have used them as a hotel worker but I have learned that over all, they are often just not worth it price wise.
I hope this is some help for you not so savvy travelers who may do so some day!
