Rates sometimes drop because hotels might have blocked out several rooms for a on-site event like a wedding or convention. Usually, rooms are released a week or two before the event so a previously sold out hotel might suddenly have availability or the hotel may drop the rates to fill the extra supply they have.
When we went to Hawaii a few weeks ago, I actually used this strategy to find cheaper rates at our hotel. Not only did I find lower rates, our hotel offered a “best rate guarantee” (I found a lower rate on a consolidator site) which meant they not only honored the lower rate I found, they also gave me an additional 10% off that rate which saved us over $100.
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