So this past week was an interesting one for travel. I was attending the Folk Alliance International’s conference in Toronto through Sunday. Nothing to do with multi-family housing—just an organization I’m Treasurer of and a chance listen to a lot of incredible music while getting very little sleep.
I was supposed to fly home Sunday evening, change out clothes and fly the next morning to the NAA Student Housing conference to be on a student housing pricing panel (probably a good topic for a future blog), then on to Rainmaker’s LRO User conference in Palos Verdes, CA. Side note: Bruce and Tammy sure know how to pick resorts—the Terrenea is just a fabulous resort with view of the Pacific Ocean and Catalina that are just spectacular.
Unfortunately, the weather in Denver decided not to cooperate. With a foot of snow and high winds, the airport pretty much shut down and my flight was canceled. After much teeth gnashing and finally re-scheduling my flights to skip going home and get straight to Vegas (first time I’ve ever done a professional speaking engagement in t-shirt, jeans and sneakers; funny thing was—it being a student housing conference—I wasn’t even the most under-dressed person in the room), I had to figure out what to do for a hotel room that night. And since it was a weather delay, United wasn’t responsible and I had to pay—which is what brings us to why I’m blogging about this.
Classic dilemma here—I really just want a room for as cheap as possible since there’s almost no distinguishable value differences between my choices (assuming I limit to generally reputable brands). It’s hotel rooms as the ultimate commodity. But I’m also a bit desperate—tired, not looking forward to the 340a wake-up call coming in roughly 8 hours and thus really not interested in a whole of searching.
So I go to the hotel kiosk by baggage claim and call the Comfort Inn Airport North. The guy tells me that the rate would be $105. I normally don’t try negotiate with hotels even though I know it can be done (I just don’t want to be “that guy”), but heck—I’m tired, I really don’t want to spend more than I have to, and I’ve got a blog to write. So I ask the guy if there’s anything that can be done with the rate. He says no, and I play the sympathy card—“not even for a traveler stranded by a flight cancellation due to weather?” Interesting that we might expect someone to give us a break when it’s due to weather but we probably wouldn’t expect the hotel to budge “even for someone who just screwed up and forgot to book a hotel night.” Same economic value to the hotel—and it’s not like there’s a long-term client relationship here since I don’t know if I’ll ever be back in Toronto; and if I am, I’m not likely to stay in that area.
So it gets even more interesting. He responds that he can’t do anything. But, if I go to the Traveler’s Aid desk and book through them, they can get me a $72 rate. More work on my part, the Comfort Inn is probably paying a commission and thus getting even less than the $72, but there you go. So a) why is there this “hidden channel” that I only discovered by pleading for sympathy and b) why can’t he just give me the $72 rate over the phone and be done with it? We don’t tend to have these channel conflicts in multi-family housing, so I’m not sure there’s a lesson to learn in our industry, but there’s definitely something to explore as a matter of pricing strategy and customer service in general. I’m not saying they were wrong—but it did seem a bit odd. What do you think?
Donald is CEO of Real Estate Business Analytics (REBA) and principal for D2 Demand Solutions, and industry consulting firm focused on business intelligence, pricing and revenue management, sales performance improvement and other topline processes