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Here recently I stayed at the Holiday Inn Emerald Beach in Corpus Christi, Texas. My mother was being inducted into the Court Reporters Hall of Fame, and it was a good opportunity to make it a family event. This particular Holiday Inn has access to a short strip of the beach, making it a bit more attractive than other hotels on Shoreline Drive. Even though I had reservations for $129 per night, the guest relations representative, Linda, made it clear that because of supply and demand my room rate was now $240. It didn’t make any sense, and it took a little reflection before I had a response to the supply and demand conversation. Too Much Information (TMI) I called Linda on the day of our check-in to confirm we had a room at this location. I heard her typing on the other end of the line, and she finally confirmed that we indeed were in the system. I asked for the room rate, and she stated $240 per night, which is the non-promotional price. I reminded Linda that I was attending the Court Reporters convention, and she reminded me that all of the discounted rooms were already booked. “Sir, those rooms are gone. At this point, we only have eight rooms left, and because of supply and demand, we can no longer offer the $129 rate.” I responded: “I thought we had reservations for $129, right?” “Well, let me explain how it works: Once those rooms are taken, we can no longer offer the rate. Since there are few rooms left, we can now charge the higher rate.” Looking for alternatives, I asked: “Is it possible for me to speak with the manager regarding the reservation we have on file?” She quickly responded: “I’m also the manager.” Okay! The fact that she doubled as the manager didn’t help me much here. The fact is that Linda was providing me with a Hotel Management 101 class – the one focused on the economics of running a seaside property. While I do understand that sellers can increase the price when the demand is high – something I remember about the scarcity of a product or service. The issue here for me was that I had a reservation, and it appeared that I had done my part to guarantee the lower rate. Mom to the Rescue When logic and diplomacy fail, what should one do? My mom arrived in Corpus Christi a day earlier, and I did what any son would consider under these circumstances. I called for help! Within 10 minutes, she spoke with Matthew (not sure of his title, but it trumped Linda’s), and my reservation for $129 was upheld. Whew! Close call! Focus on the Customer When negotiating with Linda, I mentioned my status as a Holiday Inn Priority Club Member, and the many years frequenting this hotel chain. She said: “Yeah, that doesn’t apply to room rates.” I do remember receiving a few discounts along the way with this loyalty program, but she was unbending, so I let it go. Regardless, Linda needed to consider the facts and the big picture. I did have a reservation for $129, and knowing more about microeconomics wasn’t going to solve my problem. To my knowledge, this was not a call with Fed Chief Ben Bernanke! In some cases, the customer is wrong. Even when that happens, let’s look for alternatives. We can offer one night at the regular rate, and perhaps a small discount on the second night. We can include breakfast – something! Even when we have little wiggle room in what we can offer the customer, we can save the economics lesson. Regardless, it turned out to be a hot weekend by the beach, and my mother was elated that we were there to share in her Hall of Fame accomplishment. I was also happy that she stepped in to resolve my Holiday Inn hotel rate experience.
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