IRMA and price gouging

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I was reading about Comcast opening up their xfinity hotspots for the evacuees in 3 states, I was moved by such generous move by a big business.

Well that feeling did not last long.

Friday I witnessed first hand how businesses are taking advantage of the IRMA evacuees.

The Marriott in Mobile, AL has a $80 weekend rate usually. Well to help the evacuees from FL the general manager decided to raise the price to $189/night.
 
It's no different than NASCAR race weekends, college graduation weekends, or any other large gathering of people in a location for an event. This is not unusual or to be surprised at. A hotel room that was $189 on Saturday pm was down to $89 the day after a race in Dover. And this was in 2002 when it happened with me. I stayed farther away the Saturday pm and stayed at the Holiday inn Express for $89 the Sunday night after the race. So, this is not unusual by any measure. If the prices were $250-$300 for a $80 room then it would be a much bigger deal.
 
He could have raised the rates to $489 and sold out the hotel.

Thankfully, it's been downgraded to a cat1 hurricane.
 
Good point. Heck the Marriott's around me the rates are $140-$170 per night all the time. I like them very well. But they are pricey. But very nice indeed.
 
I am inclined to agree what you describe in the OP is not gouging.

Its no different from any special event or any day during the week.
 
Sold out hotel = calling in extra staff and paying biiiiiigg overtime, especially since you're trying to get your staff to come in during a hurricane. Also, some municipalities are requiring hotels to open up to pets. $189 is a great price.
 
What is it called when airline tickets are more expensive around the holidays?
I have seen them go from $400 to $900 round trip to central America.
Price gouging?
Nah, it's called supply and demand.
 
During hurricane Andrew a couple guys from Atlanta had an idea, fill a pickup bed with generators and run them down to Florida, charge 2x the price and make some money. They were accused of gouging and told to stop it. So....they loaded up their pickup with the generators and turned around and went home.....and NO one got generators. Told their friends about the experience too. Moral of the story....greed is good. Any "gouging" creates mote supply....lowering prices over time.
 
Delivering a generator with fuel is a service not gouging.

I sold my last used generator on Craigslist during a nasty ice storm at premium dollar because I delivered and it came with my 5 gallon plastic cruddy fuel can too full of gas beyond the generator full of fuel and oil changed.

I sold $100 less then new.
 
And don't forget - it's not gouging when you put the last 5 super bowl tickets up for sale
 
Originally Posted By: philipp10
During hurricane Andrew a couple guys from Atlanta had an idea, fill a pickup bed with generators and run them down to Florida, charge 2x the price and make some money. They were accused of gouging and told to stop it. So....they loaded up their pickup with the generators and turned around and went home.....and NO one got generators. Told their friends about the experience too. Moral of the story....greed is good. Any "gouging" creates mote supply....lowering prices over time.


So basically they were investors looking for a return on their money ..?

Sounds like my stock / ETF portfolio.
 
Well, I'm more on Stockrex's side. I guess I don't see hurricane devastation where people have lost everything is anywhere near a NASCAR race or even the Super Bowl.

On the other hand, motels can charge whatever they like. Supply and demand are how the free market is supposed to work. In light of a tragedy, I feel for those that have lost their homes. They don't really have the choices you and I have. It's not really a "free" market.
 
Originally Posted By: bbhero
It's no different than NASCAR race weekends, college graduation weekends, or any other large gathering of people in a location for an event. This is not unusual or to be surprised at. A hotel room that was $189 on Saturday pm was down to $89 the day after a race in Dover. And this was in 2002 when it happened with me. I stayed farther away the Saturday pm and stayed at the Holiday inn Express for $89 the Sunday night after the race. So, this is not unusual by any measure. If the prices were $250-$300 for a $80 room then it would be a much bigger deal.


Of course it's different! People attending a Nascar race are choosing to use their discretionary income on entertainment. People having to pay inflated prices for shelter in a life threatening emergency don't have that choice.
 
History dictates a month before the storm quantities are plenty and prices are low. Those unwilling to prepare are willing to pay the higher prices. Hurricanes unlike Earthquakes are seasonal.
 
OP states the hotel "usually" has an $80 weekend rate. I see the word usually instead of always, and then don't consider it abnormal that a special rate may not always be available. And honestly, 189 a night at a Marriot, while not cheap, is well within a normal price for a room... it doesn't make it gouging.
 
Originally Posted By: CT8
History dictates a month before the storm quantities are plenty and prices are low. Those unwilling to prepare are willing to pay the higher prices. Hurricanes unlike Earthquakes are seasonal.


Even the well prepared will most likely return home in the days ahead to find most everything they have worked for has been destroyed. Those willing to gouge them knowing what they will find when they do return home, are greedy oppurtunists in the worst way.
 
Corporations only look at it from a simple supply and demand economic perspective. Demand is increasing, so they can charge higher prices for the limited supply. It really sucks for people in a bind, but from a business perspective I see why they do it.

Our last hurricane there was a guy who bought half the generators at Home Depot. Home Depot ran out of generators, and the guy was selling them for $100 more down the street.
 
So a hotel charging a non-discounted normal rate that would be charged any other time when not running a deal is now considered gouging...

Honestly, some people are looking too hard to find something to be offended about.

A search of hotels in Mobile finds this to be a higher rated hotel with plenty of other options available at a lower price point.
 
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