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Well I think the guest would not mind the rate difference and since you are paying for everything else. I say let them pay...
That's brutal!
I don't know why they would do that to you! It's not like the extra $80 you are paying is really going to make up for the 30 x$30 they are losing.
But I would go for the cheaper rate for your guests!
In terms of savings, $30 x 30 rooms= $900... as opposed to you and your FI saving $80 for your suite. I think in this case, it makes more sense to help out your out-of-town guests (who are already spending $$ for airfare/gas to GET to your wedding).
Could you suggest they make it $174 for the guests and $199 for you? If you have a 30 person block that would make up the price difference in your suite almost twice over, while still getting you the discount. And a $5/room price bump is much more acceptable from a guest's perspective than a $30 one.
I say the cheaper rates for your guests. The hotel's reasoning kind of makes no sense but I would just suck it up and fork over the extra $80.
If you can't negotiate anymore, I would let my guests have cheaper rates. More money will be saved that way.
Get a quote from another hotel and give them an ultimatum!! They won't let you go. Trust me.
Give your guests the lower rate. I attended a wedding where the hotel block rate was very high, then found out the bride had been given a free suite. I don't think she was offered an option of a lower rate, but it sort of felt like she'd used her guests to get an awesome hotel room by booking that hotel out of the other equally nice and perhaps less expensive options in the same area.
That's crap. They should be comping your room for bring them so much business. That's what we got ours to do (we actually got two free rooms!)... I would seriously consider going to another hotel.
I say splurge on yourselves and allow the guests to relax a little with money.
Give your guests the lower rate.
I'd love to know why they aren't comping you the suite though (or, at the very least a room). This is standard practice for those who bring in business with blocks. Are you able to comparison shop?
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So we started looking into room blocks. We are looking at 30 rooms. A hotel originally offered us $199 for guests and a honeymoon suite for $199. I got the guest rate down to $169 (to match what a nearby hotel stated after going back and forth a few times) but they said in order to do that they would need to bump our suite up to $279.
We really want to go with this hotel. And I know the $30 bucks savings for guests would mean a lot to them. But the bumped up suite rate kills me. I still feel like we should just accept this because it gives our guests a better rate. The alternative would be giving our guests $199 and us getting $199 as well.
I also feel awkward trying to negotiate any more. We already went back and forth a couple times. So I'm not sure what else I can do.
Without telling me this is too much to spend no matter what (it's not for our guests and the fact that its NYE in a city) what do you think I should do?