World Travel Guide:Hotels explore a la carte pricing
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Filed under: Business, Europe, Hotels and Accommodations, News
We’ve spent plenty of electrons over the past two years griping about the almost comstantly arising airline fees. Paying to check bags, get blankets and so on has become part of the misery that comes with getting on a plane these days. Meanwhile, the hospitality industry managed to stay above the fray. The same pressures affecting the airlines came to bear on hotels, as well. And, the constraints on credit made it even worse, with buildings in progress struggling under the weight of insufficient or expensive capital.
Now, there are grumblings that hotels could follow the airlines. Look out for some extra fees.
That hotels would adopt an a la carte model isn’t surprising. Rather, it’s almost shocking that it’s taken this long. A recovery in the hospitality sector isn’t expected to begin until 2011, and like airlines, hotels sell a perishable commodity. For an airline, an empty seat on a particular flight can never be sold later. If 34C from New York to Las Vegas at 7 PM on July 2, 2010 is empty, it represents money that will never come in the door. Likewise, if hotel room 345 in Las Vegas is empty that night, it can never be recovered.
The money needs to come from somewhere else.
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Hotels explore a la carte pricing originally appeared on Gadling on Sun, 13 Jun 2010 12:00:00 EST. Please see our terms for use of feeds.
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Tags: airline fees, AirlineFees, fees, hospitality, HospitalityIndustry, hotel, hotels