Saturday, September 13, 2014

Price discrimination

Shelia Kennedy asks:

When I attend conferences at fancy, expensive hotels, however, as I did on my quick trip to D.C., I am almost always charged for wi-fi. At the J.W. Marriott it was 12.95 per day for the privilege of connecting my laptop to the internet.

Can anyone explain to me why a Comfort Inn on the interstate charging 39.95 a night can offer free internet, but a “chi chi” hotel charging 350+ a night feels entitled to nickel and dime its patrons for the privilege of doing digital business?
One explanation is price discrimination. The JW Marriott charges the fee because it figures the person staying there will be willing to pay it. Perhaps, because she is on business travel, needs it more, and will submit it with other travel expenses. Someone staying at the Comfort Inn is likely to be more price sensitive. Maybe she is on vacation and doesn't really need wi-fi that badly or is just more price conscious (thus staying at the Comfort Inn in the first place).

 All I can say is: If you paid it, then it must have been worth it!