Monday, April 11, 2005

Hotels and mark ups

Most of us who have stayed in hotels have noted that the cost of using a phone in a hotel is absurdly high. Typically, most of the services offered inside of a hotel are available cheaper outside and it is known to all those who use it. Yet hotels persist with these absurd charges.

Why?

Is it because the hotel does not want to provide these services (like laundry) or is it just eyeing an obscene mark up (like telephone calls). Do hotels depend on the urgency of the need of the customer and thus aim to make a quick buck? Is it because companies foot the bill for business travellers and hence they can make good money on these peripheral services? But if the core business of hotels is customer service how is pricing these services at astronomical rates good?

Somehow, these have never made sense to me. Perhaps there is something I do not know.

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