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Why aren't hotel guests paying more and more in extras like airline passengers?
by Lin Luan LIN NFL Shop Food and beverage revenues were up slightly, but so were the costs incurred by the hotels for providing these services. The latest big news in the industry concerns how the New York Hilton Midtown, the biggest hotel in the city, is cancelling room service because the property loses money on the service, even when fees and inflated menu prices are factored in. "I don't think anyone makes a profit on room service because of its labor costs," PKF senior vice president John Fox told Crain's. Hinting that many other hotels will also discontinue room service, he said, "I'm sure all the big hotels will be looking at what Hilton is doing."polarized sunglasses
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Why aren't hotel guests paying more and more in extras like airline passengers? The answer is pretty simple: Airlines have a captive audience to sell stuff to and hotels don't — or at least not to the same extent. Once a traveler is booked on a flight, he has no choice but to pay that airline's fees for seat reservations, baggage, Wi-Fi, itinerary changes, and food and drink if he wants these services. Sure, airlines have competition among each other, but for the most part, they're competing with businesses that have the same revenue model and charge the same fees. And it's not like you can simply hop off the plane in mid-flight and hit a nearby convenience store to grab a cold drink.
Hotels, by contrast, face a much more competitive field. Because travelers have so many lodging options, hotels often find it necessary to pile on the complimentary perks—breakfast and Wi-Fi in particular—in the hopes of attracting customers. Hotels would love to charge extra for things like Wi-Fi, but that's one surefire way to tick off guests. Meanwhile, hotel guests have more options than their counterparts in the sky. Take room service. It's a delight to some travelers, but chances are, there's better food at more reasonable prices within easy walking distance of the hotel. The airline passenger doesn't have a similar set of options.
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Hotels also don't to wallop guests with fees for changing reservations like the airlines do. The standard fee for changing a flight is now $200, and the vast majority of airline tickets are completely nonrefundable. On the other hand, the standard fee for changing or canceling a hotel reservation with a minimal amount of notice remains $0.
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About Lin Luan 
LIN NFL Shop
19 connections, 0 recommendations, 11 honor points.Joined APSense since, November 16th, 2012, From NY, American Samoa.
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