Thanks, Jonathan and Lorealle, for all of your input! You guys are terrific!
The one night's stay, in a family suite, @ $99 is a much bigger dent to the budget than a $59 stay, if one has to cancel. I wonder if a specific monetary value penalty fee would be better to apply, rather than first night's stay.... I have been thinking about this a lot, and am hoping for a policy such as this:
3 mos. or more before date of arrival, change or cancel with no penalty
89-31 days before date of arrival, $20 or so penalty
30-3 days before date of arrival, $30 or so penalty
48 hours before date, one night's stay
This to me, would probably deter those who are actually abusing the system, since some of them were literally hoarding dates 'just in case', that they didn't really plan to use, and wasting Hojo's time, energy, efforts, and money, too, in wages. (We could call them Reservation Hoarders*, rather than squatters, as some here mentioned that they by were offended by that term.) This would be a fair step in the right direction, I think, for Hojo's to implement this policy, and it would cause less dissatisfaction for all of their valued guests, rather than the initial policy that was going to be put into place.
*Stay tuned for the next Hoarders episode - Woman hoards Hojo's Retro Rate Ressies and just can't stop herself.
Very well thought out!
I come from a hotel background and I'm a former Director of Guest Services...so guest satisfaction was my job!
With that said, I can tell you that personally, a tiered fee structure can be very confusing for both staff and guests. Especially when you figure in that this fee structure would be applied to ET/AP ressies only. Quite honestly, there's just too much room for error and it makes the hotel's job (of keeping it's guest happy and coming back) that much more difficult!
A flat fee is SO much easier and would help the hotel keep it's operation costs lower. Meaning, less time reservation agents spend on the phone making changes and cancelling ressies.
I also have a very difficult time believing that the Hojo's had a 43% cancellation rate. If that's accurate, the hotel should be almost half empty and I really doubt that...I think that was another poster said was more accurate. That HoJo's guests who use the ET/AP discounts KNOW they fill up quickly, so we will make 2 or more reservations with the knowledge that we will only be keeping 1 of those. And let's face it, what we cancel epecially at the discounted "retro rates", will be quickly grabbed up. So while they may have had 43% cancellation, what was there percentage of new reservations and for that matter, what was there overall occupancy rate?? I would be very surprised to learn that they didn't average AT LEAST an 80% occupancy rate. This is the rate they should be basing decisions off of and NOT the cancellation rate since it's truely not accurate.
What I would implement (and frankly, I HAVE done this before) would be the following:
1. NO fees to change, modify, add to etc an existing "retro rate" reservation. Meaning, once you make the reservation, you can make changes AT ANY TIME without a fee. Note, this is for making changes only.
2. A fee equal to one nights stay should you cancel, at any time.
This way the HoJo's doesn't loose any business if you want to make changes...it's no skin off there back, you're still staying, right! This wouldn't affect there cancellation rate so there shouldn't be ANY FEE to make changes.
Should you cancel...yes, they are out that revenue and out of the cost it takes to process your reservation. Which BTW, is small. In the long run, it may affect their occupancy rate but most likely what one person cancels, another will quickly snap up!
This is a happy medium and frankly, it's super easy to understand.
I also have a problem with the way HoJo's has gone about notifying it's most valued guests- US! I didn't see any notices on their website, nothing on their facebook page or even here on the boards. It took a fellow DISer who questioned if the policy had changed for them to respond. IMO, this was the wrong way to do this. Not very proactive if you ask me.
As a former hotel mgr, I would have posted this major change well BEFORE it goes into effect, on our hotel website, our media pages, all the boards, etc. And I know they know how to do this...why they didn't, is really beyond me??

It's always best for the hotel to spread the word first rather then have it come out in this manner...they could have avoided SO much confusion had they done it this way.
As I said earlier, I still like the HoJo's. And I'm more then willing to hang in there while they figure out this new policy. However, sadly...they no longer have my undying loyalty. Time will tell I suppose...