The economy sucks and no one is willing to splurge on a fancy night at the Graves 601 Hotel in downtown Minneapolis. Big surprise.
Well no high-end hotel wants to actually drop their prices for everyone, just the ones that are smart enough to know they don't have to pay the price listed for the room.
The hotel is trying out a new system on their website that allows guests to pick the price they are willing to pay for a stay at the hotel. Some people are saving 25 percent on their room rate.
More from the Minneapolis-St. Paul Business Journal:
The company decided to offer the bidding option in order to lure consumers who have been shying away from high-end hotel stays during the recession. The bidding option allows the hotel to pick up cost-conscious customers, while at the same time avoiding having to "erode" rates, said Ben Graves, president of Minneapolis-based Graves World Hospitality.Bidders must pay for their rooms up front instead of paying later. Bid away!
The company has been testing the bidding feature, dubbed "place a bid!," at its Graves 601 Hotel Web site for about a week and half. It's accepted about 49 percent of submitted bids. Graves World plans to roll out the option at its other properties in the near future.
The program distinguishes itself from other third-party bidding sites, such as Priceline.com, in that it allows consumers to pick a specific hotel, said Graves.