I was surfing the Caribbean & Bermuda packages and noticed that many of the packageswhich are being offered under the bidding process have ZERO bids. And many of these bids expire tomorrow. I looked at the minimum bid prices and it seems that maybe the reason for the zero bidding is that the minimums are so high (roughly 50% of the package price-and these are expensive packages). If anyone is in the mood for the Caribbean... take a peek - you might be able to pick up something pretty swell right now at half the cost.
Now the question... if there are no bidders, does LL remove the package and then put it back on, let's say, next week?Or if they don't get any takers, do they remove the property for a while. I assume the hotel determines the minimums. Anyone know more specifics on these?
I too have seen a number of auction packages that went without takers. If you can get a package at its initial offering price, those are very good deals. I assume, LL puts those packages back on the following week, or interval LL uses. I believe a property usually has a 6-month offering with LL, but many properties have stayed on season after season, while others are gone after a season. The initial minimum bidding price is most likely determined in an agreement between LL and the hotel.
I've seen packages that didn't get bid on and then reappeared a few weeks later. I've also noticed that some of the packages have expiration dates in the very near future, indicating that they've been put on the website multiple times without bids. I can understand why LL would relist packages if there aren't any bidders because buyers may not be interested in a package several months down the road, but may be interested as they get nearer to their travel dates. It would be great if LL were to reduce the minimum bids on packages that went unsold.
Hi thepiranha. Great suggestion. Why not lower the minimum bids? Let's make it more of a deal plus the property would have occupancy! We have talked to some property owners in Central America and the occupancy numbers are low. (mostly because there are tooooooooo many properties at toooooooo high price for the area.) I think that the US economy, gas prices, airline issues, etc will contribute to more competitive pricing. (at least I hope!)
CMDAVILACLI, since none of us really know the arrangements LL has with their clients, it is only speculation as to how the auction items actually work and how the pricing and terms are set. This was a popular topic in one or two threads a year or so ago and no one, at least to my knowledge, ever figured out how it works.
I think the final speculationsurmised some type of barter arrangement LL enters into with properties, that is, those properties that provide auction packages. We don't even know who keeps the money paid by bidders on the auction items, but it haswas speculated LL keeps the money in exchange for the Internet advertising and promotions done for the property. I don't think the properties actually know how much or how little a winning bidders has paid for their auction item. LL probaby decides the pricing and the frequency of the offerings.
I guess we really don't know the inner workings of LL and still can only "speculate" or "surmise" as far as frequency and pricing of LL auctions are concerned, but I think, the properties ultimately know how much the auction went for, because when the winner of the auction checks in, he/she is required to hand in the printout of the auction proof, and the hotel keeps that proof. At least, that has been my experience in every case and I have used more than 25 LL auction packages so far. I assume, the property gets some money out of this, why else would LL charge a handling fee on top of it if they kept the all the proceeds of the auction. Nonetheless, all this is speculation, and I doubt LL will divulge any of their professional secrets on how they handle these auctions. So I guess, anybodies guess is game....