Creeping Inflation & Trends On Luxury Link

[omegaet]

For almost three years, we've kept an excel file with details of LL auction trips which have held interest to us. Over that period of we have noticed what we believe to be a trend....new auction destinationsare posted, after a few months (some times a year)the starting auctionprices tend to "creep" upward (we've noticed a sharper upward movement inmany European destination...probably currency related).



Many of what we considered "prime" destinations eventually disappear---never to be seen again! The exception seems to involve cruise trips (including barge trips)....they seem to work their way back into the flow of things.



So what does thisperceptive insight mean?



We think properties are attracted or induced to participate in the Luxury Link Program (of course, we don't know the details of how that is structured).Maybe the initial structure calls for the lowest possible pricing to attract the greatest level of interest. Eventually, the "price" creep occurs....followed eventually by the end of the participation.



Cruise companiesmustreview theirpre-sale passenger loads (much as airlines do)for specific sailing dates (whenever they are a bit light in sales, maybe they decided to offer a Luxury Link auction trip for a specific date....the dates are always specified...never any choices).



So what is the distillation of this scientific observation?



If we see.....if we like it.....we buy it.....procrastinating will likely result in higher costs or lost opportunity!



Opinions or observations, Anyone?

[disneygal]

Hi O,

Although I haven't kept track of the pricing trends as you have, I have noticed upwardly mobile prices on many of the properties. My casual observation is that many properties are initially offered on LL when they are new, have undergone ownership change, or are reopening after property damage (from hurricanes, etc). At this stage there are some great deals offered. Then, as you say, those properties either disappear, or reappear with a much higher price tag. I agree - if you see it and the price is right, go for it!
Message Edited by disneygal on 03-02-200711:38 AM

[lhbrown]

Hi O and disneygal,

We too have noticed the drastic price increases, especially in European properties. In some instances, the price has actually doubled. Yes, you have to take the currency exchange into account, but I have found, that once the properties have had exposure to LL customers, the prices go up, or the property no longer needs LL and they drop out. It is as you say, O, take it when you see it on auction and when the price is right.... if you wait too long, the prices goes up or it is no longer available....

Yes, cruises are coming back including barge trips through France, but the prices are quite high...

[omegaet]

LL-Travelfan &disneygal...we just looked at the difference in starting bid price for an auction package in Mexico(apples to apples) we bought sixteen months ago....the difference is upjust a tad over 27%. The exchange rate between the peso and dollar has experienced a negligiblechange in the same period of time. The rack rates of the destination appear to be exactly the same.



This is a "buy now" or probably pay more in the future situation.....and that's a good thing!

[obrienkf]

Dear Omegaet



Agree completely. I purchased a 6 night package at Kivotos in Mykonos last fall, at $1650. Same package, 6 months later, has a minimum bid of $2100. Although I appreciate the exchange rate fluctuation, I suspect that the proprietor of the hotel as something to do with this increase. Certainly one of the advantages of offering a property in such a'bid' process was that the opening or minimum bid was low enough that it actually felt like an auction, and some of the fun for the clients was that you felt like you 'won' the package and others out bid you. There was someelement of the chase in that.



Sure, many of the minimum prices are well below the listed prices. But listed prices are not always what the hotel expects to get.This is abit of a disappointment to me. I would have considered returning for a week at Kivotos, but not with a 25% increase in cost in less than 6 months. That doesn't seem to me to be the spirit of an 'auction'.Your advice to keep track on your own little excel sheet is a good one. (Kivotos was a lovely place, by the way.)



kind regards

[lhbrown]

Dear obrienkf,

I agree with you that the increases at LL properties are such that it is beginning to quickly lose the auction appeal. Furthermore, I have noticed that LL DOES NOT PROPERLY CHECK OUT THE PROPERTIES they are putting on the auctions (at least not all of them...) and twice now we have fallen into the trap that the properties were less than what we expected (or any discerning traveler would expect), which is another pit fall of these auctions. One of the auction we bought actually bordered on "fraud", they boasted of a One Star Michelin Chef, when the chef had left 6 months ago, but this statement is still on the auction page today.... Furthermore, the hotel was very run-down, large spots on the carpet in the room and in public areas, non-functioning jaccusie tub and sink in bathroom, non-working tv in room, stained curtains and tired looking bedspread, cigarette burns in sheets, lipstick on the glasses in bathroom, bathrobe which still contained dirty kleenex from the previous customer...The hotel was in dear need of renovation and should have never been on LL. I am sure LL has never set foot into this place or it woudln't have been on the auction and Best Buy list. What do you do in a case like this?????

[jashermd]

Hello Lh,

What I'd do is send an email to LL and let them know about what you experienced -- people come here and bid on properties that they aren't familiar with because they trust that LL has vetted them, and I'm sure LL would rather discontinue the property than have disappointed clients. The success of a site like LL depends in large part on people trusting that they are going somewhere nice.

The other thing you could do is post a report on the hotel concerned on the appropriate destinations board so that other LL clients will know to avoid it. I'd certainly appreciate knowing the name of the place so I can steer clear!

I've also noticed the creeping inflation on LL -- the package I bought for $750 last year at JK Place now has an opening bid of $915, an increase of 19%. I don't think the exchange rate has crept up that much over the past year. Being from the UK makes the price increases less painful in an absolute sense, but percentage-wise that's pretty steep.

However, there are still European properties which offer very good value for money, as do many of the Asian and South African properties (though you have to watch the exchange rate between the local currency and the dollar as this can affect the value).

Cheers,
Julian

[omegaet]

LL-Travelfan.....when you encounter situations, as you have described, we think it is time to give hotel names and dates and post them in this forum. You recall, we mentioned a property in Paris, which we felt was a bit "tired" and "worn" in the common areas, including thelounge (a focal point on the main floor). You actually investigated by visiting the property, noted the conditions in the areas we mentioned and commented to on-site management. You did investigate the room reserved for your friends and were satisfied.



We welcome members who are willing to namenames and give dates, so we don't fall into situations and conditions that would have negative impacts on a holiday. We're not certain that LL staff members actually visit each of the properties represented on this site (we bet they do not)....so LL would probably welcome names, dates and times as well.



We're in this community to learn and share information (the VIP Contributor ranking and the $500 Certificates are nice but not our sole objectives).



Opinions?

[claassenam]

I agree, I love reading all of the positive reviews but we need to know the negatives as well! And not just regarding Luxury Link properties. The moderators and LL staff need to know when a LL stay is not up to expectations (knock on wood, I've never had an LL trip do anything but exceed expectations) but it would be great if any negative experiences in general could be shared in order to better enlighten the community. I think sometimes people are afraid to offend if they disagree with somebody else's positive experiences, but everyone is different and what works for one person may not work for another.....

[two2go]

lhbrown wrote:
Dear obrienkf,

I agree with you that the increases at LL properties are such that it is beginning to quickly lose the auction appeal. Furthermore, I have noticed that LL DOES NOT PROPERLY CHECK OUT THE PROPERTIES they are putting on the auctions (at least not all of them...) and twice now we have fallen into the trap that the properties were less than what we expected (or any discerning traveler would expect), which is another pit fall of these auctions. One of the auction we bought actually bordered on "fraud", they boasted of a One Star Michelin Chef, when the chef had left 6 months ago, but this statement is still on the auction page today.... Furthermore, the hotel was very run-down, large spots on the carpet in the room and in public areas, non-functioning jaccusie tub and sink in bathroom, non-working tv in room, stained curtains and tired looking bedspread, cigarette burns in sheets, lipstick on the glasses in bathroom, bathrobe which still contained dirty kleenex from the previous customer...The hotel was in dear need of renovation and should have never been on LL. I am sure LL has never set foot into this place or it woudln't have been on the auction and Best Buy list. What do you do in a case like this?????

Hi L,
Just trying to catch up on reading the posts that I haven't had a chance to read. The above mentioned problem does not happen very often with LL, but when it does happen it is very disappointing. It has also happened to us once, on New Years Eve 2005. I did not report it till a month ago. What seems very strange to me is that no one from LL customer services has called me or sent me an e-mail on the subject. I am wondering if you have reported your bad experience to LL. What was their reaction? I'm a little surprised that they haven't called the hotel to inquire about the chef & remove the statement about the One Star Michelin Chef.
two2go