The Fujoshi, on 22 August 2012 - 02:24 PM, said:
You also have to put into account of status/location. Hyatt and Embassy are big name hotels so they will charge more on the name alone, the fact that it's close to the convention and just because they can.
I've stayed in many hotels. When it comes to Hyatt, Hilton, and Mariott, you pay for much more than the name. You pay for a certain level of service, guaranteed amenities, a good restaurant/bar on site, and a host of other things.
Remember, these hotels primarily focus on business travel and high-income guests. Booking the Hyatt is like buying business class airline tickets on American or United. You have certain expectations.
Another example of status: Mcdonalds. The Mcdonalds in the convention center in Mccomick is the same price as the one near 80th and commercial on the south side. The one near 80th doesn't get a lot of traffic but it charges a good 2 dollars more than most Mcdonalds for the combo meals, bringing it to 7 dollars without tax. It's not near anything major either; it's in the middle of no where near a high way/bridge and a shelter.
McDonalds is a really bad example, since you have major differences between locations. Corporate vs. franchise, stand-alone vs. cafeteria style, etc. They're less homogeneous than hotel chains tend to be.
@Roark: You may want to put down 200 dollars or have a car to just drive to the Motel a few miles away for a sweet 99 dollars a night or it doesn't apply to you because you don't really care about ACen, (from what I assumed from the single post you just made compared to the input of DJ, Juju, and Agatha,) but a lot of people do want to go to ACen and spend the night, without having to ride back and forth due to high hotel costs or pay about the same price as rent for a hotel room because they want to follow hotel policies like a good person should.
And yes the simple solution is to either: man up and pay for it, have a friend with a car and drive to a cheaper hotel, or not go. Which is why 2013 might be my last ACen since I didn't go this year.
But since ACen hasn't said the prices yet it's just guess work based on the trends of before.
I believe that brevity is the soul of wit. Hence, short posts.
Yes, I am referring to supply/demand. People are talking about hotel rooms for two different dates as if they were fully fungible commodities, in that you have a bunch of equal, interchangeable goods for sale and that the lowest price should win out. The exact opposite is the case, since a hotel room during Anime Midwest is qualitatively different from a hotel room during ACen.
Sam has it right. The Hyatt charges more for ACen than for Anime Midwest because it's the right business decision. They have close to 100% capacity guaranteed by the convention. If you don't like the price, 5 other people are willing to pay it.
Anime Midwest will not cause the Hyatt to hit full capacity. Not even close. Being during a holiday weekend without a lot of business travel means that the Hyatt likely faces the prospect of empty rooms. Solution? Invite in a convention that will drive traffic and give them excellent rates.
So, the prices will likely remain high for ACen 2013. Because people will pay it.
Note that even corporate rates often aren't much better than the rack rates that Sam talks about. Instead, corporations negotiate for consistent rates (generally set off a schedule of the property's tier and location) and a service level agreement, so that they can guarantee access to rooms when necessary. This is why you see pilots and flight attendants getting rooms during ACen. The airlines have an SLA that guarantees access to rooms regardless of dates. Theoretically, Google could have a major IT issue and demand a block of rooms in the middle of ACen. The hotel would likely try to work out something about staying in the Hyatt down the street, but worst case scenario would be bumping some convention rooms for Google's use, since their SLA likely trumps ACen's.
(Note that certain tier rewards members can also bump people regardless of the situation. They pay through the nose in points to do so, but I've known people who have demanded rooms - and got them - from fully booked hotels.)
Edit: Also, I feel that ~$200/night is about the right price to pay for the Hyatt Regency during ACen, given capacity and hotel tier. It's on par with similar hotels in similar situations (GenCon, DragonCon, Otakon, ComiCon, etc.).
This post has been edited by Roark: 22 August 2012 - 03:06 PM