It is pretty easy to see why Premier is trying to get another CA resort. AI fees for an upcoming trip are less than $160 at Temptation, and would be $360 for Desire if rooms were available. Being able to double the price for any business would be a great plan.
It is and it isn't. The two markets attract different people with different expectations but remember it's just the AI element Bart is referring to here. Do people who visit Desire eat and drink more than twice as much as those that visit Temptation? Or do they eat and drink about the same but the food and drink costs more than twice the price to purchase and prepare? Are the bartenders, waiters, maids etc at Desire on twice the salary of those at Temptation? Is the electricity consumption per guest at Desire more than twice those staying at Temptation? I'd guess no to all of the above. It's down to old fashioned capitalism, charging what the market will bear. If you can fill a hotel most of the time and charge twice the price for essentially the same thing then you're probably going to concentrate more of your efforts in that direction in future.
Add to the discussion that several of the competing resorts for Desire in Jamaica have closed and the customer demand is sure to exceed the supply!
Several resorts closing? I think it's just Hedo III isn't it? Maybe there were others I haven't heard of. We stay once at Desire, a few years ago. I think most people that have been to both would agree that the food (particularly the buffet/ lunch and late night snacks) and quality of booze is superior at Desire. The disco was much better. The main driving factor for the price difference is the lack of resorts that offer the open environment for swingers. Desire had, and probably still has, a playroom located behind at the bar at the disco. Even Hedo, with it's reputation for being "out there" requires that you take your playing to your room. The motto at Temptation is "Nobody knows you and nobody give a damn". But still, the vast majority of people that go to TTR have their limits. "We don't need to see your junk", "Thongs on guys is just wrong" (I have to agree with that one...lol). A lot of people are not comfortable with PDA's, etc. The motto relates more to relaxing, having a few drinks and being a little silly, participating in the pool games, going topless, dressing sexy, etc. Full nudity at the pool or beach is perfectly fine at Desire and most visitors are there to play. It's a more sexually open resort. I think that is the main difference and why they are able to charge more.
Besides HIII closing - GLB (Grand Lido Braco) which was converted to Breezes Rio Bueno(both versions had a clothing optional section) has also closed permanently - the property has been up for sale for almost a year. btw - unless it is a takeover week by one of numerous groups that frequent Desire, on the average less than 1/3 of the guests during any given week are into regular Lifestyle activities - in fact according to most guests we hear from, the largest single deciding factor why they chose Desire, was that it was the only resort that offers a open adult environment that had a strictly M/F Couples only policy. Re: AI fees - going along the line of Steve's comments - why do AI fees (at both TTR and Desire) change during the year (high season / low season / Xmas/NYE) ? To para phrase Steve - Do people who visit TTR/Desire eat and drink more than twice as much in high season vs low season? Or do they eat and drink about the same but the food and drink costs more than twice the price to purchase and prepare in high season vs low season? Are the bartenders, waiters, maids etc at TTR/Desire on twice the salary during high season vs low season? Is the electricity consumption per guest at TTR/Desire more during high season vs low season?
Ah.. good points. We only had the one visit to Desire and it sure seemed like a lot more that 1/3 . Also, going on reports from friends who are regulars. But I think I missed the point of the thread when I posted. Sorry
If the resorts were mine I would be charging all the market will bear, and trying to capitalize on the obvious lack of resorts that cater to the same guests as Desire. On the down side of the income ladder is Temptation Cabo & Sea Adventure Resort. I have been to Temptation Cabo, and am surprised they can't charge more there.
Also remember the AI's for different people are different amounts. Mine are lower than the $160.00 and are the same year round. The scary thing is, that magically the rooms will be not be available all of the sudden on the timeshare side, but will still be available on the hotel side, if that makes sense.
We may consider an upgrade to take advantage of the $57 plus $31 plus $31 AI while we are at TTR on our next trip. Kind of depends on if we decide if we want to continue coming to TTR Cancun or Cabos for the next few years. I have never had problems with room availability when paying the higher AI. Does that change when you start paying the lower AI? That would be a deal killer if that's the case.