Do resort/hotel prices fluctuate like airline flights?

1,397 Views | 15 Replies | Last: 5 yr ago by The Lost
62strat
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AG
Looking at a resort in Cancun for this october. Do they go up and down like flights, or are they more stable and tied to the season/demand?

I swear I just checked a hotel again and it was $40 higher per night than when I checked a few days ago... this was on 'bookit.com' which I've never heard of. I'm looking at calendar, and the first week of october has the lower prices, but now the week we're going, the second week is higher.. makes me think they are using cookies and raising since I didn't buy? Why would second week of october be a higher demand than first week?

I have always been one to book directly with website (marriott.com, united.com, etc) but this particular resort (and most it seems for cancun) has much higher prices directly on hotel website compared to trip advisor, priceline, etc. Like more than twice as much. Even costco has this hotel and it is priced more in line with hotel website

Any thoughts on that? Are these third party sites actually getting good deals? I can pick the room and everything (ocean front, ocean view, resort view, etc) so that isn't an unknown.
TXTransplant
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In my experience they do, particularly at resorts. I just rebooked a reservation yesterday that I originally made back in January because the rate had dropped by about $30/night. And I did the same thing this time last year for our vacation last summer (different resort). I think as the dates get closer, the resorts must look at the % occupancy and reduce rates if they don't have enough reservations.

It's annoying because to get the new rate, I always have to cancel the existing reservation and make a new one. Most hotels require a deposit of one night, so you have to pay another deposit for the new reservation and wait for a refund on the cancelled one (which sometimes takes up to a week).

In my cases, though, the hotels themselves were actually offering the best rates. I almost never book through a third party discount site, and I imagine it might not be as easy to cancel and rebook if using one.

As a side note, I have a Capital One Venture card that has a great selection of nice hotels and resorts. I've been almost exclusively booking these hotels because it has a best rate guarantee and I get perks like free breakfast, a $25 food credit, and a free room upgrade, if I book and pay with my card. The reservation I rebooked yesterday, the hotel website had a "saver" rate that was even more of a discount (and I think had a stricter cancellation policy), but it didn't include breakfast. For whatever reason, VISA wouldn't honor the "saver" rate, but they did honor the "best flexible rate" (which was $30 less per night than my existing reservation).

I considered rebooking directly with the hotel, but by the time I factored in the cost of breakfast, it was pretty much break-even, so I kept the reservation through VISA. In my experience, it's almost always cheaper to just book room only rather than any sort of special packages or promotions. And if I'm going to book room only, I'll do it through VISA to get the extra perks.
62strat
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AG
I imagine if I see a lower rate through third party, I'll just book the new one, then cancel higher priced one once it's all and good. It has fully refundable cancels until 30 days out. No different than a direct booking.

I always had your sentiments as well, as far as booking directly, but like I said, for these cancun hotels, it is way cheaper on third party.

One thing I did just notice this morning, booking directly through hyatt, they have 'member pricing' and that is in line with expedia. Then there is 'regular rate' which is more than double, then there is 'specials' which is in between, closer to the member rate.

Edit, this resort is all inclusive only, but I agree, some of those packages, I don't feel I'd get my money's worth.
jammer262
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I've used Apple Vacations twice in the past with no issues. I was able to book flights, transfers, and the resort both times for a great price. I will use them again.

It might be worth waiting, that area is getting a lot of bad pub right now, which might bring the prices down. Either way, that's the end of Hurricane season, I use Square Mouth dot com for travel insurance. They quote several companies at once and you can choose based on your budget and needs.
Jock 07
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AG
I think hotels base their prices on occupancy, the more rooms available the lower the price, the less rooms the higher the price.
dcAg
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Yes of course they do. It is more enticing to go to Chicago in the summer than the winter. To Miami during the winter than the summer etc.
putu
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AG
In short, yes, hotels price their rooms by seasonality and demand, much like the airlines.

This is actually what I do for a living.

There are a lot of factors that go into pricing strategies. Most hotels (at least the chains) will try to have mirror pricing on all 3rd party sites compared to the hotels direct site. This can be tricky sometimes as there are thousands of distributors now. So you may shop around and find a better deal through on OTA (online travel agent, like Expedia).

However, if there are any issues, like needing to cancel or get a refund, you will have a much greater chance of the hotel working with you if you booked direct vs. an OTA.

Its not a bad strategy to book a refundable rate and keep looking. Sometimes our forecasts don't materialize like we thought and we need to unload rooms at a lower rate. On the flip side, we could book a big meeting and they take the rest of the rooms.


"Cal (9-3) vs. Texas A&M (9-3). On the list of rare sights in Southern California, a team running the option -- as the Aggies like to do with QB Stephen McGee -- ranks right up there with real breasts and 12 inches of snow." Stewart Mandel CNNSI
62strat
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AG
dcAg said:

Yes of course they do. It is more enticing to go to Chicago in the summer than the winter. To Miami during the winter than the summer etc.
I think you misunderstood me; I'm asking if a specific day/week will go up and down, like flights. Of course NYE times square hotel is more than same hotel in august.

putu
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AG
62strat said:

dcAg said:

Yes of course they do. It is more enticing to go to Chicago in the summer than the winter. To Miami during the winter than the summer etc.
I think you misunderstood me; I'm asking if a specific day/week will go up and down, like flights. Of course NYE times square hotel is more than same hotel in august.


too many variables in hotels. although Sunday is typically the slowest day of the week.
"Cal (9-3) vs. Texas A&M (9-3). On the list of rare sights in Southern California, a team running the option -- as the Aggies like to do with QB Stephen McGee -- ranks right up there with real breasts and 12 inches of snow." Stewart Mandel CNNSI
TXTransplant
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Apparently this also applies to rental cars. Priced a 10 day rental on the Big Island last week and the cheapest was $511. Checked again today and the price for that same rental is now $445. The cancellation fee is $50, so the price would have to drop even more to merit a cancellation and rebooking.
YouBet
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AG
Airlines, car rental companies, and hotels all practice some form of what y'all are talking about. It's called "Revenue Management". They are maximizing revenue based on a customers willingness to pay.

There are industry specific technology platforms these guys are all using to do this for the most part. Couple these with newer pricing optimization applications and you can get pretty good at it.
scott1481
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AG
I work in this industry as well.

Yes, pricing will vary from day to day and can change at the drop of a hat. There are many variables that factor into the pricing strategies. Booking direct will most of the time be a better avenue because they offer much more flexibility, particularly if you want to cancel and re-book at a lower rate. And, I"m not saying it's right, they will tend to treat you better at the hotel because you are a higher profit margin guest.
TXTransplant
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scott1481 said:

I work in this industry as well.

Yes, pricing will vary from day to day and can change at the drop of a hat. There are many variables that factor into the pricing strategies. Booking direct will most of the time be a better avenue because they offer much more flexibility, particularly if you want to cancel and re-book at a lower rate. And, I"m not saying it's right, they will tend to treat you better at the hotel because you are a higher profit margin guest.


So, is there any rule of thumb like there is for plane tickets (although, I've proven the plane ticket ROT wrong on several occasions) on how many days out to book hotels and rental cars to (hopefully) get the best deal?

I tend to want to book hotels as far in advance as possible, just so the room I want doesn't sell out completely. Since hotels usually only charge a one night deposit, it's not a big deal.

Rental cars I tend to wait on because lately companies have been requiring payment in full at booking in order to get the lowest rate. And I don't want to pay for a rental car 6 months, or even 3 months, in advance. I'd prefer to keep that to 6 weeks or less.
putu
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AG
TXTransplant said:

scott1481 said:

I work in this industry as well.

Yes, pricing will vary from day to day and can change at the drop of a hat. There are many variables that factor into the pricing strategies. Booking direct will most of the time be a better avenue because they offer much more flexibility, particularly if you want to cancel and re-book at a lower rate. And, I"m not saying it's right, they will tend to treat you better at the hotel because you are a higher profit margin guest.


So, is there any rule of thumb like there is for plane tickets (although, I've proven the plane ticket ROT wrong on several occasions) on how many days out to book hotels and rental cars to (hopefully) get the best deal?

I tend to want to book hotels as far in advance as possible, just so the room I want doesn't sell out completely. Since hotels usually only charge a one night deposit, it's not a big deal.

Rental cars I tend to wait on because lately companies have been requiring payment in full at booking in order to get the lowest rate. And I don't want to pay for a rental car 6 months, or even 3 months, in advance. I'd prefer to keep that to 6 weeks or less.
there is no set pattern we follow, there are a lot of variables that could cause demand to go up or down, both long and short term. if you can find refundable reservations at a price point you like, by all means book it and continue to search up until your arrival day (or cancel policy).
"Cal (9-3) vs. Texas A&M (9-3). On the list of rare sights in Southern California, a team running the option -- as the Aggies like to do with QB Stephen McGee -- ranks right up there with real breasts and 12 inches of snow." Stewart Mandel CNNSI
TennAg
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I haven't read through all the replies, but clear your cookies or check the site on an incognito window. The price will sometimes go up on subsequent visits to the same booking.
Aust Ag
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AG
TennAg said:

I haven't read through all the replies, but clear your cookies or check the site on an incognito window. The price will sometimes go up on subsequent visits to the same booking.
No sh$@? That's interesting,always wondered that.
The Lost
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Aust Ag said:

TennAg said:

I haven't read through all the replies, but clear your cookies or check the site on an incognito window. The price will sometimes go up on subsequent visits to the same booking.
No sh$@? That's interesting,always wondered that.


Happens on plane tickets too.
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