Why are hotels keeping phone rates expensive?
Do you know what's wrong with being charged $17 for a 1 minute phone call made from a hotel room to someone who is less than 30 minutes drive away?
It is not the obvious even though is should be illegal to charge an amount like this. What's wrong is that there is no commercial reason for doing so, it doesn't benefit anybody and in my opinion a missed opportunity.
Most people know that this is what hotels do and therefore they avoid dialing out from their room when staying at a hotel. There are multiple options for the guest: Roaming rates on your cell phone are usually extortionate but are still significantly cheaper; the more practically minded will use a phone card; those with a laptop can use Skype; or you can ask to be phoned (although this usually doesn't go down well for business matters.).
The only people who find these charges on their bill are the carefree rich or those who are unaware and the unaware will not make the same mistake twice. Because of this I am convinced that hotels make a tiny, dwindling amount from the phone when you average it out per guest.
There are many websites and blogs online about how to avoid these charges (although some of these "resources" are nothing more than a disguised advert for phone cards) but I want to ask a different question: Why do hotels persist with these rates? Why do they continue? I think it is blindness - they do it because that's how it's done.
I would bet that if hotels went against the standard and started charging less, guests would start using the phone. Hotels would make more money. The rates don't even need to be attractive, just not obscene (as proved by the continuing popularity of the mini bar which is expensive but not obscenely priced).
For example, it can't be difficult for the powerful Hilton Group to make a good deal with a VOIP service provider. By my quick calculations roughly 100 guests each making a phone call simultaneously uses the same data bandwidth as just 1 guest watching something on YouTube. So it's a drop in the ocean compared to the current usage in most hotels (internet in every room, remember) . Sure you probably have to replace the phones but this is a onetime cost.
Hell, what about free phone calls? Surely "Stay at the Hilton and all phone calls are free - to anywhere in the world" would attract business.
Believe it or not this article is not specifically about hotel rates. There are many situations in all areas of life and business where things are done for no other reason than because that is the way to do it. Questioning and turning upside-down some of these will create wonderful opportunities for a few and a fairer world for the rest of us.
It is not the obvious even though is should be illegal to charge an amount like this. What's wrong is that there is no commercial reason for doing so, it doesn't benefit anybody and in my opinion a missed opportunity.
Most people know that this is what hotels do and therefore they avoid dialing out from their room when staying at a hotel. There are multiple options for the guest: Roaming rates on your cell phone are usually extortionate but are still significantly cheaper; the more practically minded will use a phone card; those with a laptop can use Skype; or you can ask to be phoned (although this usually doesn't go down well for business matters.).
The only people who find these charges on their bill are the carefree rich or those who are unaware and the unaware will not make the same mistake twice. Because of this I am convinced that hotels make a tiny, dwindling amount from the phone when you average it out per guest.
There are many websites and blogs online about how to avoid these charges (although some of these "resources" are nothing more than a disguised advert for phone cards) but I want to ask a different question: Why do hotels persist with these rates? Why do they continue? I think it is blindness - they do it because that's how it's done.
I would bet that if hotels went against the standard and started charging less, guests would start using the phone. Hotels would make more money. The rates don't even need to be attractive, just not obscene (as proved by the continuing popularity of the mini bar which is expensive but not obscenely priced).
For example, it can't be difficult for the powerful Hilton Group to make a good deal with a VOIP service provider. By my quick calculations roughly 100 guests each making a phone call simultaneously uses the same data bandwidth as just 1 guest watching something on YouTube. So it's a drop in the ocean compared to the current usage in most hotels (internet in every room, remember) . Sure you probably have to replace the phones but this is a onetime cost.
Hell, what about free phone calls? Surely "Stay at the Hilton and all phone calls are free - to anywhere in the world" would attract business.
Believe it or not this article is not specifically about hotel rates. There are many situations in all areas of life and business where things are done for no other reason than because that is the way to do it. Questioning and turning upside-down some of these will create wonderful opportunities for a few and a fairer world for the rest of us.
