Explain the logic ?

[MichaelJackson]

Can someone please explain the logic behind this. as I just dont get it

Phoncall:

Caller: I 'd like to book a room please

Hotel: Yes sir, thats 1600 per night with breakfast.

Caller: OK, but your Hotel internet site states 1100 baht.

Hotel: Yes Sir, thats correct.

Caller: So why did you state 1600 ?

Hotel: 1100 baht is the internet price.

Caller: So I have to pay 500 baht more because I am talking to you on the phone ?

Hotel: Yes sir

Caller: I dont understand, why do I pay less on the internet and more on the telephone.

Hotel: Because on the internet we have to pay commission.

Caller: So, because you pay commission I pay less, and when you dont pay commission on the phone, I pay more ?

Hotel: Yes Sir

Caller: shouldnt that be other way around ? I pay less when you dont have to pay other people?

Hotel: No Sir that's the rules.

Caller: Ok, I'll book via the internet.

Now, where is the logic in that scenario ? I just dont get it. Can someone explain this ?

Please dont say "yes, This is Thailand"

[Squeegee]

The logic is it's a developing country with a poorly educated populace that happens to be situated in Asia, Land Of Asking No Questions.

Don't think too much or next you'll be wondering why one rule is followed "Because it's the rules" and another isn't because it suits someone's wallet.

[ukrules]

They're not going to be allowed to rent the rooms for less than a certain amount.

The price difference will depend on the contract they have with the booking website.

[arthurwait]

You should have spoken to Noi , not Phon.

[wolf5370]

It is also to discourage callers that book rooms and don't turn up, and the fact they need to pay people to man phones 24/7 when the internet just forwards the bookings and fills in their room diary all in one go and takes payment for them. Cheaper in the long run to have a human-less internet site work 24/7 than staff sitting around waiting for busy periods 24/7 (because calls can come in from abroad) and admin staff trying to keep the diary straight.

[Loptr]

The same reason as when you bargain with a vendor and they say, I sell you one for 80 baht or two for 180 baht... Just smile and shake your head, it makes life easier...

[MAJIC]

Many times I have booked 3 and four nights via the Internet and later decided to stay 1 extra night,which was charged at the full rate,if they said you got a reduced rate by booking on the Internet, it would be silly doing business by later changing their mind and giving you the same reduced rate in person!

[Satcommlee]

I often wondered the same thing, but I did get it explained to me once.. It went something along the lines of..

Hotels that join the pool for internet/travel agent bookings enter into an agreement to supply X amounts of free rooms in return for such things as free or subsidized Bedding, Towels and other Hotel consumables.

Have you ever wondered why that room you booked online is always the longest walk from reception or in the oldest part of the hotel?

Therefore the price offered by the internet booking companies is totally unrelated to what the Hotel set's its pricing at..

If a hotel undercuts a price offered online, then it is in breach of their agreement..

Sounds crazy I know, I wonder if someone could put me right or confirm this as a fact?

[David48]

First up, I can empathise with the OP ... I've encountered this more then once myself.

And there is an element of TiT ... there must be, it's their attitude sometimes to business.

So, it boils down to the lack of employee discretion ... the FOS/FOM (Front Office Manager)

is not empowered to offer rates other then that predescribed to him/her.

When, after booking the first 3 days in a Hotel to see if I like it, I have

approached the FOS with exactly the scenario the OP mentions.

The first time my Jaw dropped (I was a newbie 7 years ago) ... the 2nd time I tried reasoning,

the 3rd time I nodded, thanked them for their time, promptly went upstairs, hopped on the

computer made the reservation for the next week, emailed them it and it was all smiles

at the Reception Desk.

My strategy that has worked on occasion (maybe 60%) is to check-in, be well dressed, polite,

get offered the 'standard' room. Wander by the Reception Desk, chat, find out what chocolate

they like, buy the same, ask their help a little bit with my (really crap) Thai, check out, leave my

luggage there.

Visit Pattaya (or any other place) for a few days, check back into the same Hotel and presto

... sometimes a room upgrade ... stay in that 'nice' room for a week or two ...

Not all the time ... but it works for me more often then not.

Where a classic Western Business Model and a Thai Business Model differs is with 'capacity' and

'proximity to the event' (my ex was FOM).

It's Wednesday, the forward booking for the all important Fri/Sat nights is below expectations.

Given that the overheads are fixed, typically in the West, we would drop prices to encourage patronage.

Time and time again, the Thai would raise prices because their Business Model says, I'm not going to make

enough profit this coming week-end.

Who's right and who's wrong ... who knows ...

So, sorry to say this but MJ ... This is Thailand.

It is what it is ... I've just done my best to accommodate (no pun intended) their different Business mindset.

[craigt3365]

The receptionist probably doesn't understand what's going on, but it's not unusual for internet rates to be cheaper than walk in rates. I've been at hotels, standing at the check-in desk, and told to use the internet if I want a cheap rate. One time, a computer was right there on the counter for customers to use for free. The clerk then looked at the confirmation number and checked me in. One time was just an extension. They wouldn't give me the same rate, had to use my PC to do the reservation and then go to their business office to print out the confirmation. Needless to say, I wasn't happy. This was a big chain here in Bangkok with many properties.

Frustrating, but goes to show always check multiple sources of rates before buying. Sometimes, you get better rates by calling up. And beware of websites that claim to be the hotel. I did a search, found the hotel's website, booked a room, and upon check-in was told we couldn't get the better rooms because we used a broker! The website looked exactly like theirs. Same rate, but poorer quality rooms. And we were repeat customers!

[siampolee]

Is not the same situation prevalent when buying air travel tickets?

Go direct to the airline expensive, go to a travel agent ticket a lot cheaper.

Edited June 30, 2014 by siampolee

[beechguy]

First up, I can empathise with the OP ... I've encountered this more then once myself.

And there is an element of TiT ... there must be, it's their attitude sometimes to business.

So, it boils down to the lack of employee discretion ... the FOS/FOM (Front Office Manager)

is not empowered to offer rates other then that predescribed to him/her.

When, after booking the first 3 days in a Hotel to see if I like it, I have

approached the FOS with exactly the scenario the OP mentions.

The first time my Jaw dropped (I was a newbie 7 years ago) ... the 2nd time I tried reasoning,

the 3rd time I nodded, thanked them for their time, promptly went upstairs, hopped on the

computer made the reservation for the next week, emailed them it and it was all smiles

at the Reception Desk.

My strategy that has worked on occasion (maybe 60%) is to check-in, be well dressed, polite,

get offered the 'standard' room. Wander by the Reception Desk, chat, find out what chocolate

they like, buy the same, ask their help a little bit with my (really crap) Thai, check out, leave my

luggage there.

Visit Pattaya (or any other place) for a few days, check back into the same Hotel and presto

... sometimes a room upgrade ... stay in that 'nice' room for a week or two ...

Not all the time ... but it works for me more often then not.

Where a classic Western Business Model and a Thai Business Model differs is with 'capacity' and

'proximity to the event' (my ex was FOM).

It's Wednesday, the forward booking for the all important Fri/Sat nights is below expectations.

Given that the overheads are fixed, typically in the West, we would drop prices to encourage patronage.

Time and time again, the Thai would raise prices because their Business Model says, I'm not going to make

enough profit this coming week-end.

Who's right and who's wrong ... who knows ...

So, sorry to say this but MJ ... This is Thailand.

It is what it is ... I've just done my best to accommodate (no pun intended) their different Business mindset.

It's not just Thailand, I've run into the same thing in the surrounding countries too. Also, I've noticed when shopping for airline tickets on the internet, it pays to use caution when shopping for the best prices.

[canman]

It's the same with some airlines. Recently purchased an SQ flight, the online booking site would not accept my CC so had to book by phone and the price was higher.

[IMA_FARANG]

Agoda is a "reseller" of rooms.

It relies on volume and turnover of rooms for it's lower room rates.

What Agoda does is to is to purchase a certain number of rooms for the horels and pre-pay for those rooms at a discount rate to the hotels.

Then they use their volume marketing exposure worldwide to potential costumers for that room space.

You will never get a rate for an equivalent hotel room from the hotel as low as you do from the "hotel room' bucket operators like Agoda because you can not match their worldwide marketing base.

It's exactly the same as buying a discount flight ticket from a "bucket shop" low fare air ticket supplier.

High end hotels market their rooms through resellers like Agoda, especially at the "off peak season" period because they in effect pre-sell those rooms to resellers like Agoda and can be sure of a money making season even in 'off season" times that way.

Exactly the same reason that airlines do for otherwise empty seats during the low season travel periods.

The justification for higher costs for booking by phone is that someone has to take the call and make the booking.

Staffing costs money, they have to ne paid., and they want lunch breaks, Computer systems can work 24 hours a day, no lunch breaks required.

Edited June 30, 2014 by IMA_FARANG

[wandasloan]

This whining about a hotel room applies to almost anything in life. It applies first and foremost (for the Official Thai Visa Millionaires Advisory Board) to airline tickets. Try getting an internet bargain-site price on them, on the phone to the airline. But it applies to books on Amazon, to groceries at Big C, to tickets for the US Fourth of July picnic.... it's a fact of life, and the "logic" is partly that the person selling online requires a much lower profit margin than the person who needs a staff to man the phones, partly that online prices can be loss-leaders, partly that HUGE sales online (again) require a lower profit margin than tiny sales over the phone.

Only a person who has never run a business could have made this OP.

.

[MichaelJackson]

This post has absolutely NOTHING to do with "booking sites" such as Agoda, that was not the issue, if you look at the OP it states the Hotel website NOT a booking site.

It was a genuine enquiry made just two days ago, It was for a real booking, and I ALWAYS check with the Hotel direct before making a booking as too often I have had bookings refused on arrival by Hotels that were made via some Hotel booking sites, I dont trust those as being always a "valid" offer, but thats MY experience and yours may differ.

If you want to brag and enrich others with your in depth knowledge and x number of years in the business, do it somewhere else as its neither relevant nor on topic in this instance.

[CharlieH]

A number of Posts have been removed.

Please do not refer to other posts as "nonsense" and/or other derogatory comments. This will only serve to elicit an emotional response and often offensive reply which doesnt help anyone.

7) Respect fellow members by posting in a civil manner: do not launch personal attacks, or be hateful or insulting towards other members, ie No flaming

[welstrapadik2me]

Agoda is a "reseller" of rooms.

It relies on volume and turnover of rooms for it's lower room rates.

What Agoda does is to is to purchase a certain number of rooms for the horels and pre-pay for those rooms at a discount rate to the hotels.

Then they use their volume marketing exposure worldwide to potential costumers for that room space.

You will never get a rate for an equivalent hotel room from the hotel as low as you do from the "hotel room' bucket operators like Agoda because you can not match their worldwide marketing base.

It's exactly the same as buying a discount flight ticket from a "bucket shop" low fare air ticket supplier.

High end hotels market their rooms through resellers like Agoda, especially at the "off peak season" period because they in effect pre-sell those rooms to resellers like Agoda and can be sure of a money making season even in 'off season" times that way.

Exactly the same reason that airlines do for otherwise empty seats during the low season travel periods.

The justification for higher costs for booking by phone is that someone has to take the call and make the booking.

Staffing costs money, they have to ne paid., and they want lunch breaks, Computer systems can work 24 hours a day, no lunch breaks required.

What a load of TOSH! Do your homework before making statements such as;

"You will never get a rate for an equivalent hotel room from the hotel as low as you do from the "hotel room' bucket operators like Agoda because you can not match their worldwide marketing base. It's exactly the same as buying a discount flight ticket from a "bucket shop" low fare air ticket supplier."

This is completely misleading and untrue, many of the worlds top hotel chains and airlines provide direct booking on their internet sites and guarantee their rates are the lowest available. Try checking with Holiday Inn against the same hotel and room type as advertised by Agoda (don't forget to add in the taxes etc. that Agoda tries to hide). Same applies with all major airlines, guaranteed cheapest rates on their websites.

[Pralaad]

A number of Posts have been removed.

Please do not refer to other posts as "nonsense" and/or other derogatory comments. This will only serve to elicit an emotional response and often offensive reply which doesnt help anyone.

7) Respect fellow members by posting in a civil manner: do not launch personal attacks, or be hateful or insulting towards other members, ie No flaming

I am sorry Charlie, but it was nonsense and totally false and misleading information.

May be good idea to remove false information as it does mislead other members

There are debatable subjects and there are facts. In this instance, you can not possibly debate something that does not exist and never did

[ldnguy]

I simple misunderstanding based on language difficulties I suspect.

[Naam]

The logic is it's a developing country with a poorly educated populace that happens to be situated in Asia, Land Of Asking No Questions.

Don't think too much or next you'll be wondering why one rule is followed "Because it's the rules" and another isn't because it suits someone's wallet.

your logic is based on nothing but ignorance dear Sir. the OP's phone call might have been to Tokyo, London, Paris, Rome, New York, Geneva, Rio or San Francisco with exactly the same result.

don't shoot from the hip but read and learn!

[maswov]

You are confusing logic with "face". When asked a question most Thai people will say whatever come to their mind 1st if they don't know the answer. Very difficult for them to admit they don't know something.

Last year I made a last minute trip to BKK and did a quick check online to see if my hotel had rooms available which they did. I decided to just book the room when I got there as it would just be a few hours. When I arrived the price quoted was quite a bit more. I had said that when I checked online this morning a different price was listed. She asked which website I used and I said this hotel's website, she said oh yes that is the special internet price. So I had to get my computer out of the car go online and book the room then show the confirmation to them.

Now the reason booking via internet is cheaper than live operator or in person for that matter is labor cost of the CSRs and operators..... but I think you already knew that...

[bangarang]

Its just the way things are online... most of the time you can find better deals not just hotels but even electronic shops. Just be happy you can get a cheaper rate without having to negotiate. You can even find coupon codes for places like Orbitz and even get an additional 15% off.

[techboy]

The logic. Marketing. And convenience and cheaper for you. What do you think that you are proving with an obviously mixed up phone call with a desk clerk who quite possibly does not know the answers to your business model questions however probably is excellent at the job that he getting paid to do?

[maswov]

The logic is it's a developing country with a poorly educated populace that happens to be situated in Asia, Land Of Asking No Questions.

Don't think too much or next you'll be wondering why one rule is followed "Because it's the rules" and another isn't because it suits someone's wallet.

your logic is based on nothing but ignorance dear Sir. the OP's phone call might have been to Tokyo, London, Paris, Rome, New York, Geneva, Rio or San Francisco with exactly the same result.

don't shoot from the hip but read and learn!

While Squeegee may appear to sound like a bigoted ignorant redneck, by reading the post you can make a safe assumption that he is calling somewhere in Thailand. This is a Thailand forum where people like to bitch and complain about Thailand. Also he says the price is listed in baht and mentions the price in baht to the operator. Occasionally you will find hotels that will have a drop down to see the price in alternative currencies though.

So I would say that he used reading comprehension skills and experience rather than ignorance to determine that the OP was calling Thailand.

[Pollywaffle]

Much the same happened in Krabi. My partner and I wanted to look at hotels and facilities before we booked. We found one and asked how much to book - almost twice the rate we had seen on the internet, so we sat in the foyer of the hotel and booked (using hotel wifi) and then walked up to the desk with the booking on the screen only - no problem. And they gave us an even better room than we had hoped for.

[risky11]

Many times I have booked 3 and four nights via the Internet and later decided to stay 1 extra night,which was charged at the full rate,if they said you got a reduced rate by booking on the Internet, it would be silly doing business by later changing their mind and giving you the same reduced rate in person!

I have done the same thing in Thailand and the Philippines. However, being informed that my rate will be higher - due to booking in person - I connect to their wi-fi and book the room from my laptop. Then i have them print out the email voucher. idiots...

[Eneukman]

When we went to Chiang Mai last year, I booked the hotel on-line (Agoda). The price I paid for 4 nights was a few hundred baht more than I would have paid for one night had I just walked in.

Alan

[MrBrad]

About the hotel having to hire extra staff to operate the switchboard day and night, from what I've seen, there seems to be many more employees on hand at most hotels than one would think necessary. And most of the time, a majority of them are doing little or nothing while they're waiting for some reason to jump into action. All get paid, presumedly, so I don't think any additional costs would be incurred if one or more were required to answer the phone and take reservations. Granted, English and maybe a couple other languages would be essential for this duty, however.

But about the pricing: Rooms that remain unused and empty for the night generate no income. A calculating hotelier should be willing to sell the room for almost any price above and beyond the cost of cleaning the room after the guest has departed. Any amount more than the housekeeper's pay would be money in the bank. And knowing that housekeepers are not paid much more than minimum (now 300 baht a day), I would think that lots of rooms could easily be sold at less than their walk-in rates. But, in many if not most cases, an image needs to be protected.

[Jimbolai]

I do not make bookings and pay for a room unseen. The hotel will not honor the booking anyway, unless pre-paid. When a tourist shows up to get the last available room, they will sell that room to make sure they get the money. Also, seeing is believing.