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How can the ''24 hour charge'' per night help luxury hotels ?
Analysis 15 January 2010
Many luxury brands, irrespective of the luxury industry field have been desperately seeking for innovative measure to counter the effects of the crisis. The aim of such measure is to maintain and add value without compromising on quality.
The luxury hotel industry is yet to come up with innovative sollutions until now the only measures applied being cost cuttings and cutting of staff. One of the most innovative ideas which, at first, gives the impression of a excessive measure is the 24 hour charge per night. The 24 hour is counted from the moment the guest checks in. While this may seem as adding time to guest stays and therefore providing more services, the situation is to the contrary. Over 70% of the luxury hotel guests are unlikely to stay longer as they are usually connected to their travel schedules so they will not necessarily take advantage of the extra time. However, other guests which have been longing for a late check out will now discover there is real value in this new type of counting and registering the night stays.
Such measures will also greatly benefit the hotel's awareness and image as one which is striving to maintain the same quality of services and is making efforts to do so.
Although any customer service study indicates how important to guests is the free internet, many luxury chains are still reluctant to introducing a complementary offer. Park Hyatt for instance have introduced a 2 hour free type of daily fee while Mandarin Oriental and Four Seasons still charge huge internet rates. The only luxury chain which has recently introduced a worldwide free internet policy is Shangri La.