Monday, June 3, 2013

NY Hilton to Eliminate Room Service

The New York Hilton
(photo: wikipedia.com)
According to a Reuters story in today's New York Times, the New York Hilton intends to KO its room service feature. The massive hotel chain has asserted the elimination of room service would improve the property's profits.

It's hard to imagine the New York Hilton -- or any major hotel -- losing money on room service. A look at a typical room service menu often reveals outrageous prices for the simplest dishes. Twenty dollars for eggs, toast, juice, and coffee is not unusual. The absurd pricing, designed for expense account travelers, has simply run aground as businesses tighten their spending. However, there are times room service makes sense for a customer. To take that option away, and compel hotel guests to trudge to the lobby for "gourmet take-out," as the New York Hilton intends, cheapens the brand and the experience of staying at a "name" hotel.

The Hilton should go back to drawing board, keep room service, and identify more sensible, customer-friendly ways to increase the hotel's profit margin.



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