Why is it that a Holiday Inn will have free wifi and breakfast, but a luxury resort does not? Why will a cheap hotel have a business center with a couple of computers for free use, but a luxury hotel does not?
It’s all about competition. When it comes to cheaper hotels, competition is fierce. They are basically a dime a dozen and there are very few differences among them. Cheap hotels are a commodity.
Luxury hotels have plenty of competition too. But they compete in different ways. It isn’t about the features or benefits you get. It’s about the location, the services offered (like having a spa), and perceived value for the price.
For example, we’re staying at a large resort that has 6 or so pools, a day camp for kids, and some private areas for adults. Naturally families love this place. Next door is a group of condo style buildings with kitchens and multiple rooms, but no pools and no fancy spa. It’s going to draw a crowd looking for a different experience.
When you pick one of these places you are going to get taken for a ride. You would expect the expensive rate we must pay to cover all the expenses of keeping a resort running. Of course it doesn’t though. There is a ‘resort fee’ that jacks a few dozen singles from my bank account every day. This fee is designed to keep the grounds pretty, pools clean, and cover the cost of the slow, WIRED Internet in the rooms. They don’t include this fee in the published rate of course because it allows them to publish a lower price.
So make sure you bring a laptop and your own Internet cable, because otherwise you’ll be using the business center that costs $7 for Internet access. And that’s $7 for 15 minutes.
And pick up some pop tarts becuase the breakfast buffet will set you back $100 for 4 people.
I love our place here and have tremendoes respect for a resort that can get away with charging whatever they want for whatever you want. Just make sure you do like I did and set a realistic expectation of all the funds you will need to commit over and above the published rate just to stay at a luxurious hotel in America’s paradise state.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
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Said,
I never understood why people stay in expensive hotels on vacation. After all, how much are you actually in the room? I’ll pay enough to make sure it’s not and infested dump, but I don’t want all that other stuff when I’ll be out all day and just coming back to sleep and shower in the morning. I guess a resort is different if there’s not much else to do at the destination.