Tuesday, March 03, 2015

Price Sensitivity in the Marketplace

Ever wonder why sometimes fancy, pricey hotels charge for wi-fi internet access while budget hotels often offer free wi-fi?  Over the years, I've stayed in a variety of hotels and it never fails to surprise me.  One might expect a more expensive hotel to have better services.  Generally speaking, that's usually the way things sugar out.  As the old adage goes, "you get what you pay for".  Well, there was an article on NPR Marketplace that delves into this phenomenon:
http://www.marketplace.org/topics/business/ive-always-wondered/why-do-luxury-hotels-charge-wi-fi-cheap-hotels-dont

As the article mentions, price sensitivity is at work.  People who pay $400 a night for a hotel might worry less about free wi-fi than at a less expensive hotel.  It's definitely some food for thought.  Until next time, catch me in the library.

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