Why arent American hotels cheaper if you have to tip?
Dec 27th, 2002, 06:23 PM
#2
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As I tell my young son, "sometimes in life, it just is."
The real answer of course has to do with expectations of price and consumer willingness to spend. Call it custom, tradition, etc. In NYC you charge $18 for a martini and $10 for a beer because you can. Patrons are willing to pay this because in the context of NY, it isn't abnormal. It also has to do with the local cost of living and salaries within a given market.
Prices in the US are by no means uniform. That $10 beer in NYC, is a $5 beer in Kansas City.
The real answer of course has to do with expectations of price and consumer willingness to spend. Call it custom, tradition, etc. In NYC you charge $18 for a martini and $10 for a beer because you can. Patrons are willing to pay this because in the context of NY, it isn't abnormal. It also has to do with the local cost of living and salaries within a given market.
Prices in the US are by no means uniform. That $10 beer in NYC, is a $5 beer in Kansas City.
Dec 27th, 2002, 06:33 PM
#4
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Graeme:
Just remember, since you have posted your question in the US board, using the term 'hotel' might confuse some Americans that do not know that in Australia the term also refers to a bar or drinking establishment. Here in the States, the term is only used to mean a lodging establishment.
Just remember, since you have posted your question in the US board, using the term 'hotel' might confuse some Americans that do not know that in Australia the term also refers to a bar or drinking establishment. Here in the States, the term is only used to mean a lodging establishment.
Dec 28th, 2002, 12:53 PM
#6
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The tipping conventions are totally irrational, but you can escape most of it. Tip hungry taxi's are almost always avoidable if you research shuttles, busses, etc. Now you can more commonly get near-gourmet food in self-service eateries rather than having to put up with expensive waiter service vs. greasy self-service dives. Cheaper hotels don't have so many helpers with their hands stuck out either.
Dec 29th, 2002, 07:58 AM
#11
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It's pretty hard to compare apples to apples. I found the hotels in Sydney and Melbourne to be much higher in price than comparable hotels in US cities like Chicago or San Francisco --tips or no tips. There are some hotels that are expensive and some not so expensive. I'm not really sure what you are comparing here.
And the same is true of things like drinks. Drinks at different bars in Australia can vary by as much as double price easily, so I'm not sure what bar in Australia you're comparing to what bar in the US?
And the same is true of things like drinks. Drinks at different bars in Australia can vary by as much as double price easily, so I'm not sure what bar in Australia you're comparing to what bar in the US?
Dec 29th, 2002, 08:15 AM
#13
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No doubt they are lower than if they didn't do tips. If the business had to pay much higher salaries to their employees than their prices would obviously be higher than they are now. That's just common sense. You may think $35 is a lot to pay for a steak in a restaurant, but if the restaurant had to pay all their employees much higher salaries and there were no tips, you can bet that same steak would then cost $40 or even $42. If the steak were $18 in a cheaper restaurant now, without a tipping system you can bet that the price of the steak would increase to $20 or $22. No matter how high you think the prices are now, you can bet they'd be higher without a tipping system. It only makes sense.
Dec 29th, 2002, 08:41 AM
#17
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<<<Ross,the question then is-What do I get For my tip?>>>
You get service!! You get the bartender/maid to listen to your nonsense stories and how good or bad your life is. This in no way is meant to be an insult. I have bartended many times for 4 bucks and hour plus tips. I have to put up with obnoxious drunks, women telling me about their love life, men telling me about how bad the local sports team is and on and on. A good bartender (as I am) will work the bar and mengle with customers and smile the entire time. Therefore, I get a tip, for being a nice person and good customer service.
You get service!! You get the bartender/maid to listen to your nonsense stories and how good or bad your life is. This in no way is meant to be an insult. I have bartended many times for 4 bucks and hour plus tips. I have to put up with obnoxious drunks, women telling me about their love life, men telling me about how bad the local sports team is and on and on. A good bartender (as I am) will work the bar and mengle with customers and smile the entire time. Therefore, I get a tip, for being a nice person and good customer service.
Dec 29th, 2002, 08:49 AM
#18
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From Economics 101 - First, prices are a function of supply and demand. The price of an item is the equilibrium between the two.
Then, factor in the elasticity of an item's price. In other words, the ability for the seller of said item to raise the price and charge more for an item than would be implied by a simple determination of supply and demand imbalances.
In a capitalist society, the goal of most businesses is to maximize profit. Of course, some spin that differently so you wind up with businesses that seek the maximum profit margin per unit, in some cases to avoid being a mass seller, whereas other's look for increased profit dollars, which implies high volume/low margin.
In a free market economy, prices are therefore a function of supply, demand, and profit expectations, which factors in the impact of vairable cost fluctuations due to geographic expense differences.
Then, factor in the elasticity of an item's price. In other words, the ability for the seller of said item to raise the price and charge more for an item than would be implied by a simple determination of supply and demand imbalances.
In a capitalist society, the goal of most businesses is to maximize profit. Of course, some spin that differently so you wind up with businesses that seek the maximum profit margin per unit, in some cases to avoid being a mass seller, whereas other's look for increased profit dollars, which implies high volume/low margin.
In a free market economy, prices are therefore a function of supply, demand, and profit expectations, which factors in the impact of vairable cost fluctuations due to geographic expense differences.
Dec 29th, 2002, 09:32 AM
#19
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I believe that the price of drinks is determined by the idiots who frequent the bars. If they have low self esteem, they are actually 'proud' to pay such high prices for drinks. They need to be in an environment where 'I can afford a $10 drink, therefore I'm rich and important'. That's my theory on the whole thing. You don't see that kind of pricing where people are themselves and just want to have fun and chat with a good beer.
Also, prices are higher where salaries are higher. People in Montana (in general) don't make as much money, and don't have as many tourists as people in New York.
As for the tips, you don't have to tip if you don't want to, that'll cut some of the cost.
Also, prices are higher where salaries are higher. People in Montana (in general) don't make as much money, and don't have as many tourists as people in New York.
As for the tips, you don't have to tip if you don't want to, that'll cut some of the cost.
