On the Pricing of Internet Service at Hotels
On my recent trip to Brazil my family and I stayed at a high-end hotel while visiting Rio de Janiero's famed Copacabana beach (see picture). The room was very nice and the hotel provided several amenities free of charge, such as access to a rooftop swimming pool. However, I was a bit peeved that the hotel charged for another amenity that I usually take for granted when staying at a hotel: internet access. The hotel charged roughly $10 per hour of internet access. When I stayed at a Best Western hotel in Bowling Green, internet access was free of charge. What's going on here? Can you use the tools introduced in the monopoly chapter to explain the difference in pricing of internet services between luxury and cut-rate hotels?
1 comment:
i found the same thing too. when i travelled to disney in florida this summmer, i stayed in a very nice hotel. surprisingly, i found the internet access was charged by day. at the same time, my friend stayed in a cheaper hotel but internet was free. i was wondering why the difference.
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