Tuesday, February 14, 2012

high speed at a price


Thomas Sowell tells us: “The first of lesson of economics is scarcity; there is never enough of anything to fully satisfy all those who want it.  The first lesson of politics is to disregard the first lesson of economics.”

It must also be the first lesson of fancy hotels.  At least, when it comes to the internet.

When I check into a Best Western or a Motel 6, I can always count on a decent internet connection.  In my room.  As part of the tariff.

Why is it then when I book into a 5-star hotel with a mock French name, where even the chambermaids effect a Pepé Le Pew accent, and lay down five Franklins for my nightly stay, that the only internet is either in the lobby or in the room for an additional fee -- a fee that comes close to a full tank of gasoline for my truck?

Yes I know, almost everything in these hotels costs a lot.  Like breakfast.  Eggs Benedict for $17.  But, it tastes a lot better than the Grand Slam at Denny’s.  Money well-spent in my opinion.

But the internet?  That is about as fungible as you can get.  Unless the hotel supplies commercial grade speed -- which it doesn’t.

I suspect the answer is the same for a lot of things in American life these days.  If someone else ultimately pays the bill (such as employers who reimburse businessmen for these inflated prices) or federal aid that inflates college tuition, suppliers will do what the market bears.

At least, with the high internet fees, I have the option of going to the competition.  In a world with free wifi in coffee shops, there is no reason to pay big bucks to the big hotels.

I suspect Thomas Sowell would like that solution.

24 comments:

sparks said...

$500 a night hotel and we don't even know where you are?   I hope you meant money well spent for the breakfast ... but I question your choice of hotels ANYWHERE

Steve Cotton said...

up. Money well spent for the breakfast. The hotel was in San Francisco where everything tends to be spendy. I wrote this on my way to China -- only to discover when I got there that blogs are banned.

John Calypso said...

WHY would I want to go where Blogs are banned?  As to the high priced Internet in SF - I figure it is like them figuring one of those born every minute that will spend a half a grand on a room will pony up the dough for some kind of Internet connection. 

You said it yourself - you can afford it - didn't you say that?

Steve Cotton said...

 China is a political monstrosity.  But more on that later.

John Calypso said...

 "But more on that later."

Looking forward to your reports - it is a place I will never make it to - unless perhaps I get shipped there ;-0

Probably they are coming to us...

Andean said...

And did you get your laptop home without a problem...
-as far as breakfast and internet, Grand Bay in Isla de Navidad has a wonderful breakfast/brunch very yummy, nice atmosphere, prices as what to expect, worth the relaxation of not leaving (for the morning that is, if I chose) good service. -and then discovered internet is a fee per day last time I was there, not long ago...no reason to say the least of a conclusion

sparks said...

I hope they allowed cameras.   Why did you go to China anyway ... just 'cause it's there?

Kwallelno said...

I'm a big fan of voting with my feet-an out the door I go...

Irene said...

Hope China doesn't ban taking pictures!  Look forward to seeing some of what you saw. 

tancho said...

The charge rip off prices.........because someone will pay for it. 

Steve Cotton said...

The laptop came through with flying colors.

I have not had brunch at Grand View in quite a bit. But I soon shall.

The pay-for internet seems to be quite regular for upscale hotels. Another reason to stay at the La Quintas of the world, I guess.

Steve Cotton said...

It is a lesson I will have to remember for the over-priced hotels.

Steve Cotton said...

Yup. And usually not the person who buys the benefit.

Steve Cotton said...

Just in some areas. But I have quite a few photographs -- and a lot of tales.

Steve Cotton said...

I have wanted to go to China for years. And the price was right. Ten days, airfare, hotels, most meals. $899. Hard to beat that.

Steve Cotton said...

And I want to go back for a Yangtze River cruise. But it will be far more expensive.

Andean said...

'with the economy and present instability, in many places and the USA, I will not want to pay unless I have to- for a specific purpose-and that would have to be important.
Would I like the venue better and use it more it If I didn't have to think about that- yes-extras are nice but some of us use the internet everyday-we all have books to read.

Mcotton said...

So happy to hear you have returned safely.  Looking forward to hearing and seeing pictures of your trip.

Steve Cotton said...

For me, high speed internet ks right up therewith lunch and a good bed.

Steve Cotton said...

 And you shall soon.  Of course, you will get a better viewing than most in a day or two.

Rick said...

Steve, I paid $8000 for a trip to China. Not sure what you got for $899?
My trip was quite beautiful with guides, drivers exotic locations and beautiful women!
Either you didn't get much or I got taken for a ride. Anxious to hear about it.

Rick

Steve Cotton said...

I was concerned what we would get for $900. But the hotels were as good as the $500 San Francisco hotel I wrote about. We stayed in Beijing and Shanghai. Thh tours were extra about $200. And we saw all the usual tourist sites. I will try to give some detail on what we got for the money. But te meals included were very good. And lots of beautiful women.

Kim G said...

Don't even get me started on separate internet fees in expensive hotels. Not only is it kind of an outrage to be charged so much, but frequently in those kinds of places the internet service doesn't even work that well. Usually you have to call the front desk, and then they have to get someone to twiddle with something before it even works.  By then, of course, it's rather late and you don't even get your 24 hrs worth.

Usually on check-out, I ask them why I have to pay extra for the internet. They usually tell me something to the effect that it costs the hotel to provide that service. Then I typically say something to the effect of, "Well the 2000 channels of cable TV are far more expensive than a high speed connection. Why  don't you bill separately for that too?" Usually that flummoxes them. I hope senior management is listening.

Meanwhile, not only do the cheap hotels provide the internet for free, but it usually works flawlessly.

Saludos,

Kim G
Boston, MA
Where we are thrilled we don't travel much for business any more.

Steve Cotton said...

You are giving me ideas about future conversations with desk clerks. I wonder how much discount I can get for the inability to use their silly little shampoos? The fact that expensive hotels think internet is an extra is the most disturbing aspect of this topic. La Quinta looks better with each post. By the way, I stayed in one last night. The internet was "free" and worked perfectly.