King sized rates for UK hotels

Why are British hotels so expensive? And how are British hoteliers using price discrimination to charge different nationalities different prices for the same room? These are other questions are explored in this excellent Independent “Big Question” feature from last week. The online article contains a superb graphic that teachers might want to use in a worksheet. There is a lot of microeconomics in the article by Martin Hickman, consumer affairs correspondent.

“The UK has the most expensive hotels in Europe, according to a new report. Staying a night here cost an average of £106 in 2007, up 12 per cent on the previous year. So why are Britishhotels so expensive? Three factors – tax, costs and supply and demand – according to the British Hospitality Association, the hotel industry’s body.”

The article can be accessed here

The Times reports today that “The leisure group Whitbread has been holding secret talks to merge its Premier Inn budget-hotel business with the rival Travelodge chain in a move that would create a £3 billion hospitality giant.”