Friday, October 19, 2007

Oct 19: Upscale Hotel Charges

Recently while traveling, I was charged a daily $18 resort fee (even though I was in meetings all day unable to use the resort) and $26 daily for the privilege of letting my car sit in the hotel’s parking lot. It got me thinking…

The general theory was that travelers on business expense accounts don’t care what anything costs. Their company is picking up the tab. It seems, however, that many companies are no longer able or willing to pay for “martini lunches” and other non-essential items. They have become more cost conscious. At the same time the current tax rules on deductible items have tightened. Are more people turning to mid-priced hotels that are including web-access, free parking, and free breakfasts in their rates?

And, where’s the line? How does a hotel today balance finding new sources of revenue without incurring a backlash from customers? Have you changed what is included to be more competitive?

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