How do they determine room discounts?

[WouldRatherBeInWDW]

What I mean is this...When they offer room only discounts, the discount varies from hotel to hotel, but it doesn't make a lot of sense. For example, for the late summer discount POFQ gets 5%, but Caribbean Beach and POR get 20% (all moderates). All-Star Movies also gets less of a discount than the other All-Star resorts too.

Is there a rationale behind this?

 

[chasgoose]

Hotel occupancy. Disney uses discounts to get people to stay in hotels that dot have a lot of bookings

 

[mickeynut1]

As the pp said, it all depends on occupancy. If a resort is at or near occupancy, there will be no discount offered on that particular resort as there's no need to try and fill rooms. Same goes for how much of a discount is offered. If a resort is getting booked, but not to a point that is near or at full capacity, a small discount will be offered, leaving the larger discounts for the resorts that aren't booking up fast enough for a certain time frame.

 

[disnut8]

What I mean is this...When they offer room only discounts, the discount varies from hotel to hotel, but it doesn't make a lot of sense. For example, for the late summer discount POFQ gets 5%, but Caribbean Beach and POR get 20% (all moderates). All-Star Movies also gets less of a discount than the other All-Star resorts too.

Is there a rationale behind this?

A bunch of people gather in a bar, get drunk and then decide.

 

[chasgoose]

Also the discounts are higher for the more expensive resorts for two reasons. First, they start at a higher price so there is more to discount, but also, if they can say discount a deluxe down to the point where a family staying at a moderate would continue upgrading Disney will still get more money from that family, and hopefully that family will stay deluxe next time they come.

 

[WouldRatherBeInWDW]

Thanks. It makes sense that AS Movies would be more booked up than the other 2 AS resorts.

 

[shyjade]

Also the discounts are higher for the more expensive resorts for two reasons. First, they start at a higher price so there is more to discount, but also, if they can say discount a deluxe down to the point where a family staying at a moderate would continue upgrading Disney will still get more money from that family, and hopefully that family will stay deluxe next time they come.

Soooo true! That's how Disney bit me with the Poly bug!

Unfortunately, I never got a discount there again, any the economy took a huge dive (as did my income), so I cannot justify staying there anymore, although it's definately where my heart belongs.

 

[Masonmj84]

Also the discounts are higher for the more expensive resorts for two reasons. First, they start at a higher price so there is more to discount, but also, if they can say discount a deluxe down to the point where a family staying at a moderate would continue upgrading Disney will still get more money from that family, and hopefully that family will stay deluxe next time they come.

Yep, we've become victims of the Disney discount paradox.

Our first trip, we stayed at CSR and got free dining, which we upgraded to deluxe. That got us hooked on deluxe-style dining.

On our next trip, we stayed at Poly & BC with room discounts. That got us hooked on deluxe resorts.

So in large part, because of discounts, we're now hooked on deluxe-style dining AND deluxe resorts.

 

[Missytara]

A moderate like POR would book up very fast under free dining, because it is the most affordable for the family of 5.

You also have to note that when people take advantage of moving up a level; this eventually opens up a lot of value resorts, which then people opt who are staying off-site.

I noticed this a few years ago; my week is the week after Thanksgiving. They offered free dining and I pounced on POR and got it. The next day, it was sold out.

Suddenly, I noted a lot of the values had availability, but they too started to fill up.

A few weeks later, I looked at the off-site hotels on International Drive and they were suddenly offering up to 45% off room rate with massive availability.

 

[darkwing818]

A bunch of people gather in a bar, get drunk and then decide.

Personally I always thought it was a bunch of people hitting the bars & using the Magic 8 Ball...

 

[buzznina]

Disney is the puppet master and we are just the puppets at the end of the strings I am just glad I did not get hooked into the "once you stay at a certain level you cannot go back". Our family has had a great time at each of the resorts we have stayed at.

 

[sndral]

What I mean is this...When they offer room only discounts, the discount varies from hotel to hotel, but it doesn't make a lot of sense. For example, for the late summer discount POFQ gets 5%, but Caribbean Beach and POR get 20% (all moderates). All-Star Movies also gets less of a discount than the other All-Star resorts too.

Is there a rationale behind this?

Rationale? I'd say it is profit driven.
POFQ is a small resort and is probably closer to the target % occupancy, thus no need to generate new bookings through hefty discounting.
POR is a large resort and CBR is a huge resort and probably the % occupancy target is a ways off - thus the more attractive discounting.
Don't know much about the values, but the deluxes and villas often have different % discounts, as well.