Naive Travelers Subsidize Hotel Rates - Be a Smart Traveler withThese Tips

Economists study how naïve people subsidize cut rate hotels.
The New York Times has an interesting article about the work of two university professors from Harvard and MIT/Princeton who say savvy people take advantage of good deals by avoiding the hidden costs that suckers pay.

The smartest strategy, they say, is for the sophisticated consumer to choose the service with the most hidden charges and highest add-on prices, but then avoid paying those added costs. “The sophisticated consumer takes advantage of that, the naïve pay all the fees.”

For example, you see an offer for a hotel room for $75 (which costs the hotel $100 to provide). The guy checking in behind you also rents a room, but will rack up $70 in fees from the minibar, the phone and garage parking (all of which cost the hotel $20 to provide). You, on the other hand, were not tempted by the minibar, used your cellphone for calls and took public transportation to the hotel. The other guy subsidized your room."
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travel, hotel+rates,
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