Why do hotels cost so much money?

[BigToque]

Say you took a $200 /night room, it would cost $73,000 for a year.

That's crazy... what do they offer that could possibly cost them per night, that the hotel would be that expensive?

 

[brigden]

Price is dictated by consumer demand. Prices rise in warm months, or around certain holidays because people are willing to pay more. If no one would pay $200/night, hotels would adjust their rates, but they obviously keep rising.

 

[NutBucket]

The fact that you do only do a day or two at a time. Besides, do you have a maid? Do you wash your towels on a daily basis? etc.

 

[Argo]

Originally posted by: NutBucket
The fact that you do only do a day or two at a time. Besides, do you have a maid? Do you wash your towels on a daily basis? etc.

Add that to the fact that hotels are usually located in downtown (read expensive) areas, have a ton of personel, need to pay more taxes etc, the math adds up.

 

[elektrolokomotive]

Location expensse.
Labor costs.
Demand.
Amenities.
etc...

 

[Epic Fail]

Originally posted by: Stefan
Say you took a $200 /night room, it would cost $73,000 for a year.

That's crazy... what do they offer that could possibly cost them per night, that the hotel would be that expensive?

If you stay at a prime estate, the rental cost of a place like a hotel room can cost 1/4 of the $73,000 already. Then you add in the maid service, furniture, utility and other upkeeps, you are talking a lot of money already. And hotels don't always have full capacity to get to $73,000, somewhere in there, there is also profit.

 

[yllus]

The mints.

 

[cubby1223]

Say you bought a $10 million mansion? Or how about staying at the budget $50/night hotel?

 

[Tylanner]

I just rent a small storage space for 50 bucks a month and bring my sleeping bag...

 

[bsobel]

Originally posted by: Stefan
Say you took a $200 /night room, it would cost $73,000 for a year.
That's crazy... what do they offer that could possibly cost them per night, that the hotel would be that expensive?

What kind of hell hole is only $200 a night

 

[radioouman]

Because many hotels are only filled up by business travelers who don't care what they have to pay since their company pays for them.

 

[DainBramaged]

Originally posted by: Tylanner
I just rent a small storage space for 50 bucks a month and bring my sleeping bag...

:thumbsup:

 

[kranky]

Hotels in that price range usually have restaurants, and they are a massive money-loser. They have to have upscale food, waitstaff, ambiance, wine list, etc., yet hardly anyone eats there. But if a guest wants to, they have to offer a top-notch meal.

There's also an "amenities race" going on among the better hotels which costs money as well.

I try to stay at Holiday Inn Express whether I'm traveling for work or on my own dime. They have everything I need and it's relatively cheap.