25 September 2003
Traveller Hotel Group eliminates all room rates
Free rooms expected to return record profits
GENEVA, Switzerland -- In a surprise move to trump the competition, Traveller Hotel
Group (THG), operator of 435 luxury resort and spa properties in North
America, Europe and Asia, announced that it has completely eliminated charging for use of
its
guest rooms. "From here on
out," said CEO Jean-Paul Chaphrau, "the price of all our rooms
is zero. The rooms are free. Only a few fees will be added to a guest's
bill on checkout."
It taking this unprecedented move, the company expects to increase its
occupancy rate to nearly 100% and triple its revenues, which will be
earned from a variety of incidental guest fees.
Travel Fox was able to acquire the following partial list of fees
associated with a typical free stay in a modest room at the company's
property in Leon, France:
 Reservation fee to book a room (€
4)
Transaction fee to secure a reservation (€ 3)
Processing fee for use of a credit card (€ 3)
Activities fee for the use of the pool, exercise facility, and spa (€
9)
Overnight parking fee (€
18)
Convenience fee to include use of elevators, escalators, corridors, sidewalks (€ 7)
Utilities fee for electricity, water, heat, and air conditioning (€
7)
Personnel fee to staff the hotel (€ 11)
Housekeeping fee for cleaning services (€ 15)
Security fee for guard services (€ 5)
Resource replenishment fee for the consumption of
any item (€ 5)
Sanitation fee to provide clean restaurant dishes, glasses, and utensils
(€ 5)
Room service fee (per delivery) (€ 6)
Management fee to assign hotel employees responsibilities (€
7)
Transportation fee for guests arriving by vehicle (€
3)
Cleaning fee for guests wishing to bathe (€
17)
Somnolence fee for sleeping (€
27)
Facility fee for use of the building and its furnishings (€
13)
Miscellaneous user fee for use of room
not addressed by other fees (€ 8)
Upgrade fee for each level of upgrade
from a standard room (€ 15per
upgrade)
Research fee for guest satisfaction surveys (€
2)
Marketing fee for hotel advertising (€ 2)
Community service fee for on-going "good neighbor" programs (€
3)
Administration fee for management staffing (€
4)
Recycle fee for picking up recyclable waste (€
3)
Reclamation fee for reuse of recyclable waste (€
3)
Disposal fee for non-recyclable waste (€ 3)
Historical preservation fee for downtown historical society (€
6)
Indigenous persons fee for sleeping within a previously occupied space (€
4)
Health and welfare fee for French workers (€
9)
Air quality impact fee for guests who breathe through their noses
or mouths (€ 6)
Commercial trade-zone fee for any guest traveling on business (€
11)
Water conservation fee for overuse of daily guest water allotment of one
liter (€ 15)
Translation fee to provide services in
English (€ 17)
Entertainment fee for use of the televisions, radios, and closed circuit
broadcast viewing of guests as they check out of their "free" rooms
(€ 12)
Additionally, city, district, regional, national, and value added
taxes will be added as appropriate (typically 22%)
So a one night stay, which used to cost € 235, is now free
with incidental fees being only about € 351.
"Such an arrangement," noted
Mr. Chaphrau "is a win-win for our company
and our customers. Well, okay, at least for our company, anyway."
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© 2003 Applied Psychology
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