Update on the Amazing $30 Rate at The Phoenician

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On Tuesday I wrote about an amazing deal at The Phoenician Hotel where you could book a stay for $30 per night between December 11th and 31st through spg.com.

Phoenician 30
As of today it seems that Starwood has sent out a batch of emails to those who booked:

“I am contacting you today in regards to your December 2013 reservations for The Phoenician.

Unfortunately, due to a systems error on March 27, the resort temporarily listed the incorrect and very low accommodation rate of $30 per night. While the Terms & Conditions on our website indicate the right to cancel if a reservation resulted from a mistake or error, we value your business and would like to extend an exclusive, discounted rate of $130 per night, as well as double SPG points for this stay. Currently, the correct, available rate for December 2013 is more than $400, providing you with a savings in excess of $300 per night.

We hope you will accept our redress regarding this matter. However, as this was indeed an exceptional circumstance, we are also giving you the opportunity to cancel your reservation(s) without penalty. We hope to hear from you soon so we may discuss and either finalize your accommodations, or cancel the reservations. To connect with a member of our Customer Service team please email us [email protected]

If we do not hear from you by April, 12th, 2013 we will assume you no longer want to keep your reservations and we will cancel them on your behalf.”

I think this is fair on Starwood’s part since they could have unilaterally cancelled all of the reservations, similar to how United canceled all tickets when there was a mistake Hong Kong award fare.

I also give Starwood and the hotel props for acting quickly, especially since all of these reservations are 7+ months away. While it would be great if they were honored, you win some and lose some and in this situation it seems like a potential for a win-win- great rates (still over 50% standard prices) and bonus points opportunities and the hotel doesn’t completely get clobbered, though I’m sure there will still be a financial hit.

Do you think Starwood's offer of $130 a night and double points is reasonable?

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