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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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So they just raise the room prices, it won’t make much difference. Fortunately I only go for a week each year and it’s for a conference, so the company pays for it.
So they just raise the room prices, it won’t make much difference. Fortunately I only go for a week each year and it’s for a conference, so the company pays for it.
Well technically the price will be the same (although of course, prices will continue to rise).
According to CZR CEO, the only reason Resort Fees exist is to avoid paying so much to the booking sites.
Booking sites take a chunk of room fees, but nothing on resort fees.
Ironic given that large hotel chains essentially created the booking sites (encouraged and promoted them, allowed them access to reservation systems, etc). This was done to fill up rooms, usually with last minute availability.
Fast forward 10 years and the Booking sites were costing the hotels so much, they created resort fees to increase profits - not a penny to the booking site for that part of the total room cost.
Problem is, corporate greed kicked in. Now some properties charge $45/night resort fee. For WIFI?? Really??
Same CEO recently stated that they have to watch the creeping resort fees, as they might cost them business. Also plainly stated that we're not there yet.
I disagree.
Be that as it may, we DO NOT NEED Congress to act. Let the market decide. More regulations inevitably causes price hikes. Always, regardless of industry or intent.
There are some behind the scenes issues here, especially when it comes to rooms sold through consolidators / on-line sites. Usually these rooms are bought in bulk at a steep discount and resold. Originally the hotels only made the money on the initial bulk sale. The consolidator would then advertised them to the public at a discount to the hotels own retail rate, competing with the hotel. But now, the resort fee is collect by the hotel directly from the guest, giving the hotel another revenue stream that goes around the consolidator.
If the resort fee gets banned, the hotel will have to try and charge the consolidators more to make up the difference. But these are big buyers who control a lot of sales. They will give the hotels a lot of push back. If the hotel don't make deals with them, a lot of rooms will go empty. This could bring total room rates down (advertised rate + the current resort fee) down significantly.
Quote:
Originally Posted by Hemlock140
So they just raise the room prices, it won’t make much difference. Fortunately I only go for a week each year and it’s for a conference, so the company pays for it.
So they just raise the room prices, it won’t make much difference. Fortunately I only go for a week each year and it’s for a conference, so the company pays for it.
I don't see how this law could be legal. What other industries are required by law to show the components of their charges and not allowed to have some certain charge given? I get the complaints, but this is the free market here. When you buy something retail does it make sense to say I hate that I'm not told how much the price is with tax included? Sorry but I could see the courts laughing their rear ends off and blowing this legislation to the moon.
I don't see how this law could be legal. What other industries are required by law to show the components of their charges and not allowed to have some certain charge given? I get the complaints, but this is the free market here. When you buy something retail does it make sense to say I hate that I'm not told how much the price is with tax included? Sorry but I could see the courts laughing their rear ends off and blowing this legislation to the moon.
There is plenty of history of regulation is similar circumstances over the years. I'm too lazy to google them all for you.
Usuallly I'd agree with you. But given the nature of this situation, I don't. Here the tug of war between industry heavyweights is catching consumers in the middle. No one is saying they they can't charge what they want for the room, but they can only charge one number, and not layer on multiple mandatory charges. Between the hotel chains and consolidators, they can figure out their relationship without screwing the consumers.
This goes to Willie's point also. No one is regulating the total price, just that they can't layer on multiple fees at multiple times.
Quote:
Originally Posted by VonZimmer
Be that as it may, we DO NOT NEED Congress to act. Let the market decide. More regulations inevitably causes price hikes. Always, regardless of industry or intent.
-von
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