Hong Kong Luxury Hotels Alienating Visitors ?
#16
Join Date: Jul 2014
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You are now aware this is called the economic concept of price discrimination. Most high-end places do this all over the world, as you can clearly see the elasticity of demand is different between locals and visitors.
Taken to a more general level, all travel-related industries do this because this is how they make a living nowadays. Ever seen 2 different fares on a flight? Are you going to stop flying? Stop staying at any hotel al all?
Taken to a more general level, all travel-related industries do this because this is how they make a living nowadays. Ever seen 2 different fares on a flight? Are you going to stop flying? Stop staying at any hotel al all?
#17
Original Poster
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I very much appreciate the concept of price discrimination, it's how you go about it.
#18
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Shanghai
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If Cathay were to ask you on their website to provide your HK ID number and systematically offer you lower fares because you are a HK resident, then yes I would actually stop flying them. That's not price discrimination, that's discrimination.
I very much appreciate the concept of price discrimination, it's how you go about it.
I very much appreciate the concept of price discrimination, it's how you go about it.
#19
Join Date: Jul 2014
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If Cathay were to ask you on their website to provide your HK ID number and systematically offer you lower fares because you are a HK resident, then yes I would actually stop flying them. That's not price discrimination, that's discrimination.
I very much appreciate the concept of price discrimination, it's how you go about it.
I very much appreciate the concept of price discrimination, it's how you go about it.
#20
Join Date: Sep 2008
Posts: 7,875
If Cathay were to ask you on their website to provide your HK ID number and systematically offer you lower fares because you are a HK resident, then yes I would actually stop flying them. That's not price discrimination, that's discrimination.
I very much appreciate the concept of price discrimination, it's how you go about it.
I very much appreciate the concept of price discrimination, it's how you go about it.
HK did have price discrimination-they banned fuel surcharges (sadly not anymore).
And discrimination is not illegal unless it is illegal.
And further to your point, is it discrimination that there are sales from certain places and not others? I do not understand your 'appreciation' of price discrimination
#21
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Actually, the reality is opposite - CX charges higher for ex-HKG, i.e. those who originate from HKG usually pay a higher airfare than their counterparts.
#22
Original Poster
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By "Appreciation," I meant that I understand what it is and why it is used.
#23
Moderator: Luxury Hotels and FlyerTalk Evangelist
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,843
This thread seems to be wandering into a more general discussion than HK luxury hotels. I'll leave it open for now but if the trend continues, it might be better addressed in a different forum.
RichardInSF, moderator, luxury hotels and travel
RichardInSF, moderator, luxury hotels and travel
#24
formerly known as deathscar
Join Date: Jul 2007
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Of course prices will be different from different places. That's what FlyerTalkers thrive on ;-) I see no problem in a fare being cheaper, for example, from Helsinki to Hong Kong than Paris to Hong Kong. Anybody could station themselves in Helsinki to take advantage of it. What I would have a problem with is if only Finns were allowed to use the cheaper fare from Helsinki and foreigners had to pay a higher fare.
By "Appreciation," I meant that I understand what it is and why it is used.
By "Appreciation," I meant that I understand what it is and why it is used.
Another key point to note from a marketing standpoint is that upscale/luxury hotels can't sometimes (even in these lean times) be seen to be offering too low a discount - i.e. if it is available to everyone (e.g. OTAs, official website etc). Because once Upper House is selling at HKD 1,200/night++, it's going to be hard to recover from that to go back to HKD 4,000-5,000/night rates (see what happened in Dubai to some of the hotels there). One way to circumvent this is to only offer a rate to "locals" (extreme example - they still won't offer locals HKD 1,200/night++ but you get the idea).
#26
Join Date: Apr 2002
Location: NYC
Posts: 9,113
It's not discrimination because it is based on residency and nothing else. I can avail of those rates no matter who I am as long as I am a resident. It is no different from getting the AAA or corporate rate. I also hate paying $600 at an MO or FS while the guy from IBM is paying $300 - but it is perfectly legit.