a Hampton Inn room that is normally $175 to 200 is now $600-800 per night. that is price gauging!!!
2007-02-02 17:42:19 · 4 answers · asked by hotjunior222002 2 in Sports ➔ Football (American)
supply and demand
If there had been a hurricane and they were charging that much for a room, that might be price gouging. A Superbowl is hardly a "need' scenario. It's purely a luxury/recreational activity.
In a free market, they can rent it for whatever a renter is willing to pay. This is fair as long as the rate of the room does not exceed the maximum rate posted on the inside of the room (usually on the door)...most every state requires innkeeper laws and the maximum rate to be posted on the inside of the room.
Technically, that rate is the Rack Rate or "Full Rate" of the room. Hotels usually offer significant discounts on that rate because during a normal business week, people won't pay that much for a room. (That's the competition part of free-trade, when demand goes down, so does the price).
2007-02-02 17:46:01 · answer #1 · answered by Yep! 4 · 0⤊ 0⤋
And that would be capitalism for you.
However, price gouging is related to a comodity that is necessary to live by. Such as food, gas, etc.
Going to Miami this weekend is a choice, not a necessity.
I suppose no worse than a Superbowl ticket costing $4000.
2007-02-02 17:53:40 · answer #2 · answered by ump2please 4 · 0⤊ 0⤋
So you're not an Economics major eh? Well, duh, if you were the guy that owned that hotel and you knew you'd easily sell out all the rooms at $600 per night, you sure would be stupid to keep the price at $175, wouldn't you?
2007-02-02 17:50:21 · answer #3 · answered by KevinStud99 6 · 0⤊ 0⤋
Supply and demand. Greedy people will charge as much as they possibly can.
2007-02-02 17:47:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋