Hotel gouging customers during Holiwood Nights? (HW)

Sunday, May 28, 2006 10:09 AM
First off, I just got back from a great coaster enthusiast event at Holiday World. Instead of crashing out Saturday night after the event, I sucked it up and drove the 6 hours back to the Chicago area.

This topic brings up a Motel 6 I passed along Rte 231 and I-64 which is somewhat near HW. I noticed that the price for one person was $79.99. If you are familiar with this hotel chain, they charge between $40-50 at all their hotels.

Makes you wonder if the owners of that particular hotel decided to inflate the prices knowing they would get a good turnout because of this event.

This isn't to start a debate over cheap hotels vs. higher quality ones (Gonch stay out of it :) ). I just know that I have never heard of a Motel 6 charging 80 bucks for a room.

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Sunday, May 28, 2006 10:29 AM
Every hotel inflates prices during certain times of the year.
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Sunday, May 28, 2006 10:52 AM
You should see what small towns with big colleges do for home football games (Im talking about you South Bend, IN) 300% increases and demands for a deposit of 2 nights (non refundable, even if you dont stay the extra night) at the time of making the reservation is not uncommon. Count your blessings its only $20.
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Sunday, May 28, 2006 10:56 AM
While this does happen very often for events and certain time periods, I checked the Motel 6 website. They actually have an even higher rate listed for weekends after the 1st of June for that property. Looks like it's standard for them.
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Sunday, May 28, 2006 12:10 PM
Blame it on Memorial Day Weekend, not Holiwood Nights.
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Sunday, May 28, 2006 12:37 PM
Agreed. Motel 6 on Atheron Drive in State College, PA was about $49.99 in March, but like $239.00 on home football games, etc.
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Sunday, May 28, 2006 1:39 PM
I went to this area 2 summers ago mid-July and was shocked at the rates. I ended up staying in Jasper. Evansville was probably a better option too. Anyhow...chalk it up to supply and demand! There are not enough hotels in the area to keep up with summer demand!
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Sunday, May 28, 2006 3:04 PM
I don't think it's gouging. Simple laws of supply and demand. Obviously there was low supply and high demand. If their was a high supply they would've been trying to undercut the competition. I believe the closest Motel 6 to me is charging $66 a night for a room next to a commuter and csx railroad.

EDIT: Updated price. *** Edited 5/28/2006 8:47:53 PM UTC by coasterguts***

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Sunday, May 28, 2006 3:22 PM
The ones along I-10 here in the desert Palm Springs area go from $49.99 in the summer to $69.99 in the winter. They just charge what people will pay I guess.
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Sunday, May 28, 2006 4:30 PM
I was rather suprised by the price as well, but they said this is standard for Memorial Day weekend. I don't think any of the other SRM's was on holiday weekend. I think I've always gone to HW in the early spring and late fall so I must have missed the summer pricing.
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Sunday, May 28, 2006 5:48 PM
Not gouging.. Supply and demand.

If you look, every hotel room has the maximum rate that the hotel can charge for that room. Usually between $100 and $300. However, most hotels lower there prices from this rate so the actually get customers when the demand is low. When demand is high, they can charge all the way up to the maximum.

Basic economics, Pefectly legal (hence the Rate cap law), and it is exactly the same principle that capitalism is built on.

(And yes, those of you will say that the Hotel was not even full, yada yada yada)... But still, if there is an event in that area.. demand goes up, even if they do not fill the hotel.

On another note, $79.99 on memorial day weekend is not bad at all. A couple years ago I was not even able to find a hotel room within 60 miles of where I was in West Michigan on Memorial day. I ended up sleeping in my car.

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Sunday, May 28, 2006 5:54 PM

Chitown said:
I sucked it up and drove the 6 hours back to the Chicago area.

Just Remember who drove you to the Louisville/Santa Claus Area ;)

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Sunday, May 28, 2006 8:42 PM
That's not bad at all IMO, especially since there were A LOT of out of towners there and it was Mem. Day weekend. HW seemed to be out in the middle of NOWHERESVILLE to me but the room I got in Jasper only cost about 60-70 dollars. This is actually chump change compared to the $190 for Sat. night of Mem. Day weekend last year outside of Jackson, N.J. SFGADV is kinda in the middle of nowhere as well. Now that's what I call price gouging.
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Sunday, May 28, 2006 9:09 PM

Chitown said:
This isn't to start a debate over cheap hotels vs. higher quality ones (Gonch stay out of it ).

Ok. :)

James K nailed it. All hotels will raise rates during special events. It's exactly like he said, there is a 'maximum' rate they can charge - consider all other times a 'discounted rate'.

Classic case of a lesson in supply and demand.

Price gouging is when a hurricane hits Florida and residents need a place to stay and a hotel bumps up to $500 a night.

The difference is in the necessity - which is something people seem to forget when they spout the price gouging complaint.

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Sunday, May 28, 2006 9:20 PM
^ He said stay out!!!

Just kiding!!!

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Sunday, May 28, 2006 11:08 PM
They know what's going on around town, and I don't blame them for taking advantage of the opportunity.

Plus, it's pays to reserve in advance. We stayed at the mentioned Motel 6 both this weekend, and also back in October for Fall Affair. Both times we payed $49.99 per night because we reserved 2-3 months in advance. I know not everybody has the ability to plan that far in advance, but if you do, a lot of times you can get a great rate.

And as far as these events go, Motel 6 is great for us. Our two small children travel with us on most of these events, and by the time were done at a park all we really need are two beds and a shower. We don't need an in-room jacuzzi, hot breakfast buffet, or indoor waterpark. Just a place to crash and shower.

But if you think that $79.99 was bad for that location, you should've saw the suggested rate posted on the back of the room door.

1 person - $99.95 (per night)

2 persons - $119.95 (per night)

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Sunday, May 28, 2006 11:12 PM
I had a friend that used to work front desk for a local motel and during a busy weekend in the summer he'd call around all the other motels in to find out if they were full. If they were, he'd start charging more for rooms to make the owners more money. He'd charge up to 100 bucks a night during these times. Needless to say, the owners LOVED him working for them.
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Sunday, May 28, 2006 11:56 PM
We payed $100 a night at santas lodge.
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Monday, May 29, 2006 6:19 AM
I wasn't comparing this to other hotels. I was always under the impression that the Motel 6 chain AS A WHOLE charged the cheapest of any chain no matter where a hotel was located, events, etc.

This is what supposedly set them apart from the other chains. They always bragged they were the cheapest regardless and didnt bait you into something else.

Just seeing the sign saying $79.99 for a room at a Motel 6 struck me as odd. I am not complaining nor do I care. I guess I learned from the replies that this hotel chain is capable of doing what its competitors do.

Live and learn, right Gonch? :)

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Monday, May 29, 2006 10:28 AM
stayed at the days inn in jasper for 50.99 a night for all 3 nights... guess i did good :)

// a bit far of a drive, though
/// obviouslly it was well worth it, though :)
//// HW rules?
///// yes. yes it does.

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