The Hidden Luxury Hotel Tax
December 27th, 2007 Posted in MSNBC - Tripso columns, Travel industry, Vacation deals
My new Tripso column came out yesterday: The high price of high-price hotels. If you’re a round-the-world backpacker type, you probably avoid these places like the plague anyway (unless it’s to sneak into their pool or meet a relative for a drink). I’m posting the link here though because it’s important to note that whether you are in a really expensive country or a super-cheap one, a luxury hotel is going to cost you a bundle because of the “hidden luxury hotel tax.”
True, you can splurge for a great five-star hotel in Bangkok or Cairo and pay significantly less overall than you would in London or Tokyo, but in relation to mid-priced hotels in the same city, the difference is relatively standard around the world. After all, those Four Seasons and Mandarin Oriental bean counters are still expecting a certain rate of return or they wouldn’t have built there in the first place. So while it is true that you can get a five-star hotel room for $200 in Bangkok, it is also true that you can get a very nice four-star hotel room for half that. (And as you probably know, a guesthouse room to flop in for the night for under $10).
The rate is only part of the story though, which is the point of this article. You pay more for a taxi, more for meals, more for services that come gratis elsewhere (like WiFi), and you have given up all bargaining power by staying there. As a travel writer, I’m one of those rare people that is often staying in a cheapo inn one night and a luxury resort the next. The way locals treat me (and charge me) during the respective stays is fascinating. True, it’s kind of fun having people in pressed uniforms sucking up to you all the time, but believe me—you pay for it!
Read the full article.
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