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Quote: Mission146

This one caught my eye, since I used to be in hotels:

https://www.kvue.com/article/news/investigations/defenders/texans-complain-of-possible-price-gouging-at-hotels-amid-winter-storm/269-499d81ce-cd91-4fd4-8d60-7fc3a623926b

Relevant quote:



Okay, so the question is really what might constitute, "Exorbitant or excessive." I think that's really tough to say because, right or wrong, prices are simply going to go up when you have millions of people who might be looking for perhaps tens of thousands of available guest rooms.

Obviously, such a massive power outage is an extremely rare situation, which is something that we never had to deal with during the time I worked at either of the two hotels that I used to. I'm not sure that we ever had any power outage that would have sold us out within minutes, or anything. The only time a power outage might have resulted in such a thing, we were already nearly sold out anyway (so our rates were already about as high as we ever went) and people refused to pay them and accused us of price gouging...even though the rates (at that particular time) hadn't been changed in weeks.

What do you guys think, "The right thing," is to do in this situation? Should the hotels just keep their, "Normal rates," as if nothing in the world was happening, should they be allowed to charge whatever they want?

I can say that our rates were often ridiculous for what you were getting; I'm not even going to pretend otherwise, but it was a simple function of supply and demand. We spent the better part of three years at 80%+ occupancy, often completely sold out, except on Sundays. I'd have liked to have seen more investment in improving the public areas of the property (such as the pool), or having a continental breakfast that didn't completely suck, but I didn't own the property---I managed it---so that wasn't really my call. The rooms themselves, in my opinion, were basically fine at the time. The rooms themselves were certainly better than others I've seen at other properties flying the same flag (franchise).

Anyway, how different does the fact that it's a natural disaster make the concept of supply and demand? We charged rates that the property itself almost certainly did not justify, but that was as a function of supply and demand. We charged in accordance with trying to maximize room revenues.

That's not to say we never, "Did the right thing," as long as we had rooms just sitting there anyway. If a family was traveling about and had their car break down with very little cash, we'd give them a room for next to nothing. On a few occasions, a couple would need separated (at home) because both were drunk and getting into it, so the cops would call and ask if we could hook the guy up with a ridiculously low rate---and we'd do it, if we had plenty of availability anyway and the guy promised not to tell anyone how little he paid.

I know that I'd be faking some rooms as Out-of-Order or temporarily check them in as, "Comped," to someone who doesn't exist to kill my online inventory. No question about that. Reservations are going to be phone-call or walk-in only, cannot be cancelled and I'm sure as hell not having anyone stay on points or paying 20% of the rate to a third-party booking company.

Those things aside, I think I'd just leave the rates where they would normally be. I'd probably just take the unexpected sellout and be happy with that.

Quote: petroglyph

I've read that drug cartels are the closest example of true capitalism that we have today.

Quote: Mission146

Okay, so the question is really what might constitute, "Exorbitant or excessive." I think that's really tough to say because, right or wrong, prices are simply going to go up when you have millions of people who might be looking for perhaps tens of thousands of available guest rooms.

Obviously, such a massive power outage is an extremely rare situation, which is something that we never had to deal with during the time I worked at either of the two hotels that I used to. I'm not sure that we ever had any power outage that would have sold us out within minutes, or anything. The only time a power outage might have resulted in such a thing, we were already nearly sold out anyway (so our rates were already about as high as we ever went) and people refused to pay them and accused us of price gouging...even though the rates (at that particular time) hadn't been changed in weeks.

What do you guys think, "The right thing," is to do in this situation? Should the hotels just keep their, "Normal rates," as if nothing in the world was happening, should they be allowed to charge whatever they want?

Quote: ams288

Poor ted. Didn’t get the upgrade.

Quote: rxwine

He really got burned. He said in one interview he was only going there one night because the kids wanted to go

Quote: rxwine

New names, Lyin', Flyin' Cruz, and Fled Ted

Quote: SOOPOO

Excellent. So a politician, Ted Cruz, is a hypocrite! And a liar! In other news, water is wet.

Quote: terapined

Its worse
The entire planet knows he abandoned the ship
He's is a famous hypocrite! And a famous liar
And
Some politicians really do care such as Beto. He was working on wellness checks for seniors

Quote: SOOPOO

In other news, water is wet!