Here’s an unconventional way to cut your room rate

Hotel room rates are about to resume their climb. The latest forecast calls for average daily room rates to get a modest 3.5 percent bump in 2011, which means we’ll all pay a little more for our accommodations next year.

Unless you’re Kevin McGonagle and you’re staying at the Hilton Sydney. McGonagle thought the AU$359 was out of his price range for a six-night stay in November, so he did something unconventional: He asked the hotel to lower its price. He asked politely.

And what did the hotel say? I’ll get to that in just a moment.

Normally, hotel guests don’t directly negotiate rates with hotels. That’s the domain of meeting planners and corporate travel managers who represent the interests of big corporations or convention groups.

But who says you can’t? Well, no one.

Here’s how McGonagle did it. He sent the following email to Hilton:

My wife and I have stayed and enjoyed both Hiltons and Conrads around the world; Europe, Africa, and North America. We are willing to pay that little extra to a take the pleasure in what we consider to be the finest hotels in the world.

I do not travel for business as much as I used to, so our Hilton Honors level has fallen just to Gold status. (How we enjoyed being Diamonds.) But still we stay exclusively in Hilton properties. Our Hilton Honors AMEX card is a testament to how much we appreciate the Hilton brand.

I am hoping to extend our streak and stay at the Hilton Sydney on our holiday this November. We want to stay six nights from 21 November to 27 November to celebrate my wife’s birthday.

Unfortunately, the lack of “affordable” rooms has left me at a loss. We are looking for a King Hilton Guest Room – but the web site tells me that there are none of these available. I simply am not able to justify the expense of the Executive King Guest Room.

Is there any chance that you would be able to provide a King Hilton Guest Room for us on this special trip? I do so appreciate your help in this matter.

Thank you for your time and trouble. Forever thankful.

Interesting request. McGonagle is polite and mentions his importance and loyalty to Hilton without being arrogant. He also doesn’t articulate a desired room rate, at least directly. Instead, he asks if a lower room category can be made available.

These are strategies used by some of the best travel professionals in negotiating with hotels. Basically, he’s saying “work with me” without being an obnoxious haggler.

Here’s how Hilton responded:

We really appreciated your loyalty to Hilton and Conrad brands over the world and we believe you had a good time while your travelling.

After discussing with my manager, please understand the hotel is experiencing high demand and therefore, we are unable to offer our standard or deluxe room types at this stage. However, we are happy to drop down the price for you to AU$309.00/per night per room in our Executive room for you only. The website is selling AU$359.00.

Kevin, please advise if you would like to go ahead and book. If yes, please advise credit card number with expiry date to confirm the room. Thank you!

Not bad.

McGonagle took the room. And I think we can take something from his experience, too: Everything is negotiable. The trick is, how do you do it?

I wouldn’t try squeezing a budget hotel when you’ve booked a Priceline room, for example. They’ve already lowered their price enough. But if you’re splurging on a longer hotel stay and have some history with a particular hotel chain, then why not mention it?

(Photo: Lin h Rom/Flickr Creative Commons)

  • Chris in NC

    Its nice reading something uplifting once in a while. However, the message doesn’t surprise me. I have learned that ALL hotel rates are negotiable. Most of the times, it is a matter of being polite, having reasonable requests and not having the sense of entitlement. Most times, the hotel will accept or place a counter offer. I’ve had hotel staff politely tell me, “I just can’t do that” but have been surprised when they say “Sure.” Where most people go ashtray is when they are told no, they show their true colors. That doesn’t get you anywhere!

    I’m willing to be the farm that Mr. McGonagle not only negotiated the special rate, he will be treated like a VIP when staying in Sydney. I wouldn’t be surprised if he finds a fruit basket or flowers in his room when checking in, or may even get a better room.

  • http://golodgings.com Martin Smith

    This is shameless self promotion but if you are traveling and want an experience that normally far exceeds that of a hotel at a lower (in some cases much lower) price then trying staying in a private apartment. You can find them on FlipKey, VRBO and other websites. They probably won’t work for one night but if you are staying three days or more they really can’t be beat.

  • Chris in NC

    Here’s some of my tricks…

    Check the hotel’s web site which will give you a rough guide on availablity and rates.

    Instead of saying “My status is ____” upon check-in, I politely ask “Is my (frequent rewards) number in my profile?” This is primarily for upgrade purposes.

    If there is a special occasion (anniverary, birthday, etc.) I put a note on the reservation. This has allowed upgrades, and once at a Marriott, the manager sent up a complementary fruit basket and flowers.

    When calling for a hotel, instead of saying “What’s your lowest rate?” (remember, you already know what the rates are on the hotel’s web site), ask “Do you have availability?” and then say “Will you accept a rate of ___” (by undercutting the lowest rate by 10% or 20% or ??%”

    If booking in advance, I get a sense of what Priceline is offering at the property or similar properties. Call or e-mail the manager in advance and saying “are you willing to accept the $$ rate” Many times they will match or not!

    If you’re traveling during peak season, the rate of success is much lower, but it still never hurts to ask. Many times I will use “I know this is probably unrealistic, but I wanted to ask…” Most times, staff will smile, but I’ve been shocked by the one or 2 times when they said yes.

    Bottom line: a) it never hurts to ask, b) Don’t have expectations or be a jerk when they say no, c) be reasonable!!!, d) don’t flaunt your status, e) do your research in advance! (to know what is reasonable to ask)

    Having status or history with the hotel helps though. There is one particular hotel that my wife and I love to stay in. Every year, we return roughly the same weekend. Once, the front desk upgraded us to a very special room on the Concierge floor, with the remark “since you’ve been staying here every year…”

  • Arizona Road Warrior

    I agree with Chris in NC, it is a matter of being polite, having reasonable requests and not having the sense of entitlement. Typically, I don’t ask for price reductions instead I usually ask for special requests (i.e. early check-in; late checkout; milk for my son when my family travels with me; room selection; etc.). My wife doesn’t understand why we get the ‘red carpet’ treatment.

  • jrgal331

    Many hotels that offer Priceline rooms would rather sell the room directly to the guest. This allows the hotel to save the commission they pay the third party internet site.

    Remember, you may pay $100 on the discount web page, but the hotel only makes $75 and is responsible for the occupancy and sales tax on that amount. The internet booking engine keeps the $25 difference.

    Many hotels i work with would rather have you call them and book directly lowering the price slightly from the discount in order to save money on the comission.

  • Joe Farrell

    I always call a hotel directly when their rates are cazy – what I ask for is an upgrade to a concierge floor for the standard rate- why? You get free coffee- and other amenities – and think about it – you get coffee, water, sodas and food presentations as part of your room rate. Saves me $40 a day when on a business or personal trip. Most hotels are happy to give that upgrade for free. They get a full price booking and give away $5 in goods and services.

  • Joe M

    Reminds me of a recent stay I had. I was traveling down for my mother’s birthday get-together and opted to stay in a hotel rather than crash in with the rest of the family (large family, small spaces). I was polite and had a nice conversation going with the desk clerk during check-in. When going through the whole list of discount rates (which I don’t qualify for — don’t travel enough to warrant joining the programs), I jokingly lamented that there wasn’t a good customer discount.

    When the clerk got to the length of the stay (4 nights), she seemed to be a bit surprised. Sensing an opportunity, I again mentioned that it would be great if they had a good customer discount. Lo and behold, I suddenly qualified for one of their normal disounted rates.

    It wasn’t a huge discount ($10 or so per night), but it was a discount that I didn’t expect to get and the hotel didn’t have to give me. It certainly earned the chain (Hampton Inn – which happens to be a Hilton brand now) a fair amount of good will and taught me that it never hurts to ask.

  • Duke Nukem

    Sure, he got a AU309 rate, but Hilton took back those AU50 in the form of a resort fee! LOL

  • Mike Z

    Excellent information, though I guess one would have to be a very frequent guest in order to get exclusive rates at the best hotels. if I was booking a hotel in this manner, my letter would look something like this;

    “My girlfriend and I have stayed and enjoyed Motel 6s in several states; Ohio, Iowa, Illinois, Maryland, Virginia, and South Carolina. We are willing to pay that few pennies extra to a take the pleasure in what we consider to be the most economical hotel in the world.

    I do not travel for business at all, even though I would love to travel on the company dime. (How we would enjoy being any level of attained status.) But still we stay exclusively in Motel 6 properties. Crews of construction workers partying till all hours of the night, bums urinating in hallways, and the sound of ladies of the night giving men pleasure have never been able to dampen our fondness of the brand. Our bathroom full of free toiletries, soaps, and shower products is a testament to how much we appreciate the Motel 6 brand.

    I am hoping to extend our streak and stay at the Columbus, Ohio location on my special day this November. We want to stay two nights from 26 November to 28 November to celebrate my Ohio State Buckeyes winning yet again over the University of Michigan.
    Unfortunately, the lack of “affordable” rooms has left me at a loss. We are looking for a standard guest room – but the web site tells me that there are none of these available. I simply am not able to justify the expense of going down the street to your competitor, Howard Johnson.

    Is there any chance that you would be able to provide a standard guest room for us on this special trip? I do so appreciate your help in this matter.

    Thank you for your time and trouble. Forever thankful.”

  • flutiefan

    I agree that there are industries where negotiating can pay off….but not always the travel industry!
    I work at an airline’s ticket counter, and I cannot tell you how many times a passenger walks up to ask, “How much is a ticket from Chicago to Dallas tonight?” When I give the price, they constantly (and inevitably) reply, “Is that the best you can do? Isn’t there anything cheaper?” Well, NO. That’s the price. It is what it is. Airline CSAs and most hotel desk clerks don’t get to decide these prices, and we don’t just make them up out of thin air. Do you ask the cashier at the grocery store to lower the price of your gallon of milk when she scans it through? Somehow, I doubt it.
    I am all for loyalty and providing incentives for repeat customers who contribute to the company’s bottom line. But to ask for cheaper prices when you’re given a rate, to me, is slightly distasteful.

  • West Coaster

    Chris thanks for sharing. The Sydney Hilton is a great hotel, I am sure they will enjoy, especially, if they have access to the Executive Lounge.
    Bottom line, make sure that you are dealing with someone who can make a decision and most importantly realize, that the decision may or may not be one that will make you happy.

  • Andy

    What is the concierge floor? I have never heard of it. Please explain more. Thanks.

  • Roberto

    @flutiefan I’m sorry you find your airline’s customers to be distasteful, but I always ask if a price is the best available price. You’d be shocked at how often it is not. You should try it yourself.

    Sometimes I wonder if businesses routinely quote a higher price and conveniently forget to mention that a lower price is available.

  • Barry Graham

    Been doing this for years, sorry I would have told you, didn’t realize it was so unusual!

  • Barry Graham

    Flutiefan, you could also say that to be quoted a really high price is also distasteful, unless you are an airline where the laws of right and wrong are different.

  • Carver

    @Flutiefan

    I respectfully disagree with your position.

    This ‘distastefulness” is of the travel industry’s making. Your statement that “That’s the price. It is what it is.” is completely false. Travel providers routinely fail to quote the best price. At the grocery store, everyone pays the same price for the same apple. Accordingly few haggle at the grocery store.

    By comparison, travel prices are very dynamic with different folks paying different amounts.

    Accordingly, customers have no confidence that the price that they are quoted is really the best price.

  • flutiefan

    If I failed to quote the price for that given flight on that given day, I would be fired. Our transactions are monitored and studied regularly. When someone asks me how much something is, and then asks again–but for a lower price–that is in effect saying that I was not giving them the truth. That is calling me a liar. I put in the city codes, and the fare amount pops up. I cannot change it. So yes, IT IS WHAT IT IS.

    Where is the “right and wrong” in that? A ticket tonight from Chicago to Dallas is, say, $298. You may wish to find another price on another airline, which is fine. But to repeatedly say, “Can’t you do any better? Don’t you have something cheaper? Isn’t there some sort of discount for me?” gets insulting when you insinuate that just because I am an airline employee, I must be trying to flout the rules.

    Read again what I said before you attack me, please. I did not say all of my customers are distasteful. I said people who continually ask for cheaper prices than the one that is required by an employer to give, just because they don’t like it or think it’s too much, are distasteful. In ANY industry.

    Thank you Carver for your contribution. I am a regular reader and I always find you to be respectful and knowledgeable. I definitely see your point when it comes to the differences, but since I know my own ethics and the rules/regulations involved with my employment (and how much me following those rules p!sses people off), to be questioned over and over (and over & over some more) whether or not I am trying to “rip you off” and giving an unbelievable price (my particular airline has very few fare codes in their structure, so pricing literally is what it is on that day, no ifs ands or buts)…. well, it becomes insulting to me personally.

    Thanks everyone for your time. I’ll fade back into anonymity now. LOL

  • Salami

    @MikeZ – Your dedication to Motel6 is, uh, admirable?

    @flutiefan – Just because you are not in a position to negotiate pricing does not mean that a hotel manager is not as well. You, as an airline rep, are not responsible to fill all seats on a plane, where the hotel manager is most likely to benefit if he/she fills all beds in a hotel. And if I’m calling and politely asking for something that they can and will grant but choose not to offer as an advertised special then why wouldn’t they do it? It might mean the difference between me paying their hotel or someone else’s. And there are a WHOLE lot more options in hotels than there are in airlines. I only have so many options flying between LAX and BOI, but there are hotels all over both locations for me to choose from. Airlines and Hotels, just as airline and front desk reps, are very different!

  • flutiefan

    Thank you Salami for that perpective! I agree that they are very different animals!

  • Carver

    @flutiefan

    Sorry if I sounded like I was attacking. It certainly wasn’t my intent. I think that having a diverse group of people and opinions leads to a healthy discussion.

    For airline agents, perhaps you have little flexibiliy in pricing, but that’s not true for car rentals and hotels so people tend to paint with a broad brush.

    Hope you stick around

  • flutiefan

    Thanks Carver! And you were definitely not who I felt was attacking, but I appreciate your willingness to see all sides.

  • Patrick Harris

    Hilton has been extremely nice to us. Last June we were on our way to Rhode Island and decided to see the Statue of Liberty. Scouted the area late evening found no places to stay. The GPS said our closest was a Hilton near the Lincoln Tunnel. Called Hilton Reservations and was quoted $25o for one night. I said that was a budget buster. The operator asked if I was willing to drive 8 miles for $125. Sounded good to me. Very nice room, really good breakfast bar and an easy trip back to the monument. Desk staff asked if I want to join Hilton Honors. Sure why not! American Express Card showed up with a generous credit line. Next trip was to Amana, Iowa. Stayed at a Hampton in Cedar Rapids. After 11 p.m. front doors are locked. Phone didn’t raise anyone. Another guest let me in. At the room attempted to set the heat/ac. The clerk came down and tried to get it to work without success. Lovely stay except it was a bit chilly. In a hurry on check out. Arrived home and decided to call Hampton to tell them my tail of woe. Got a note from the Cedar Rapids Hampton apologizing and they were refunding the full two nights! I had not expected it and said so. No screaming or yelling on my part just thought they should know. They did honor their 100% satisfaction guarantee. They meant it! I’ll continue to pay a bit more for a good room with the service they have given us.