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(Patch)   Hotels near SFO jacked up their rates like crazy after the Asiana Airlines plane crash left hundreds stranded   (millbrae.patch.com) divider line 54
    More: Asinine, Asiana Airlines, SFO, Best Western, Travelodge, Leland Yee, hotel managers  
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2122 clicks; posted to Business » on 07 Jul 2013 at 7:23 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-07-07 05:54:49 PM  
just a little excessive capitalism to ease the trauma, the real american way
 
2013-07-07 05:58:46 PM  
Ain't capitalism grand?
 
2013-07-07 06:04:52 PM  
Obvious tag forced to pay those exorbitant rates?
 
2013-07-07 07:06:43 PM  
Markets. How do they farking equate demand and supply quantities???
 
2013-07-07 07:24:31 PM  
Yay for price gouging after a tragedy!
 
2013-07-07 07:27:03 PM  
Submitter hates liberty and freedom.
 
2013-07-07 07:35:56 PM  
i understand supply and demand but i really feel automatic price controls should be activated in 100 mile area around a disaster and only released once the area has recovered sufficiently that price gouging is not going to work.

by price controls i mean frozen at the level 24 hour prior to the disaster and increases only allowed to accommodate legit raises in wholesale prices for an item.

i will never agree to profiting off the misery of others.
 
2013-07-07 07:40:39 PM  
Is this the thread where I'm told I'm a bad person for thinking that maybe money shouldn't always be everything?
 
2013-07-07 07:41:04 PM  
For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?  "Price gouging" just discriminates by willingness and ability to pay - those willing to pay the most can stay near the airport, those willing to pay less can go stay in a Motel 6 in East Palo Alto.

Any other solution I can think of (first-come-first-serve, a lottery) will be equally unfair - some people will stay near the airport and others will be staying in a Motel 6 in East Palo Alto because there simply aren't enough beds near the airport, but who stays where will just be completely arbitrary and/or random.
 
2013-07-07 07:42:25 PM  
I'm guessing these rates are set automatically according to a formula based on occupancy rate of hotels in the area. Also, the reporters didn't ask the hotels if they were giving a discount to the victims.

Seems like the reporter is setting out to create an outrage story.
 
2013-07-07 07:47:28 PM  

OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?  "Price gouging" just discriminates by willingness and ability to pay - those willing to pay the most can stay near the airport, those willing to pay less can go stay in a Motel 6 in East Palo Alto.

Any other solution I can think of (first-come-first-serve, a lottery) will be equally unfair - some people will stay near the airport and others will be staying in a Motel 6 in East Palo Alto because there simply aren't enough beds near the airport, but who stays where will just be completely arbitrary and/or random.


Oh look, it's someone who has no idea how many hotels and motels there are on the peninsula.
 
2013-07-07 07:49:45 PM  

MrEricSir: I'm guessing these rates are set automatically according to a formula based on occupancy rate of hotels in the area. Also, the reporters didn't ask the hotels if they were giving a discount to the victims.

Seems like the reporter is setting out to create an outrage story.


Also, is it the travelers that are stuck with the bill, or how many airlines are paying for stranded travelers?
 
ZAZ [TotalFark]
2013-07-07 07:56:02 PM  
Are they gouging media vultures? I think I'm OK with that.
 
2013-07-07 07:56:19 PM  

The All-Powerful Atheismo: OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?  "Price gouging" just discriminates by willingness and ability to pay - those willing to pay the most can stay near the airport, those willing to pay less can go stay in a Motel 6 in East Palo Alto.

Any other solution I can think of (first-come-first-serve, a lottery) will be equally unfair - some people will stay near the airport and others will be staying in a Motel 6 in East Palo Alto because there simply aren't enough beds near the airport, but who stays where will just be completely arbitrary and/or random.

Oh look, it's someone who has no idea how many hotels and motels there are on the peninsula.


On 4th of July weekend?  That weren't already otherwise booked?  SF and the peninsula in general is short on hotel space to begin with (try getting a room in a non-crackshack during WWDC sometime), having a bunch of extra people suddenly want to stay in the immediate vicinity of the airport on a holiday weekend is just going to mean that somebody is not going to get to stay there.
 
2013-07-07 07:58:03 PM  

palan: MrEricSir: I'm guessing these rates are set automatically according to a formula based on occupancy rate of hotels in the area. Also, the reporters didn't ask the hotels if they were giving a discount to the victims.

Seems like the reporter is setting out to create an outrage story.

Also, is it the travelers that are stuck with the bill, or how many airlines are paying for stranded travelers?


Since the problem is not due to the airline itself, I would say not a single one.  I've been at an airport that ran out of fuel for the entire farking airport, and the hotel cost was definitely not covered by American.
 
2013-07-07 07:59:04 PM  

palan: MrEricSir: I'm guessing these rates are set automatically according to a formula based on occupancy rate of hotels in the area. Also, the reporters didn't ask the hotels if they were giving a discount to the victims.

Seems like the reporter is setting out to create an outrage story.

Also, is it the travelers that are stuck with the bill, or how many airlines are paying for stranded travelers?


I would guess the travelers, as this isn't an issue caused by the airlines themselves so they are not at fault that the airport closed runways and therefore the flight capacity was halved.
 
2013-07-07 08:00:44 PM  

OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?  "Price gouging" just discriminates by willingness and ability to pay - those willing to pay the most can stay near the airport, those willing to pay less can go stay in a Motel 6 in East Palo Alto.

Any other solution I can think of (first-come-first-serve, a lottery) will be equally unfair - some people will stay near the airport and others will be staying in a Motel 6 in East Palo Alto because there simply aren't enough beds near the airport, but who stays where will just be completely arbitrary and/or random.


How about "first come, first served".

Price gouging isn't some noble way of discriminating by "willingness and ability to pay", it's people making a profit off of suffering and misery.  Don't expect people to endorse that.  Yeah, it's as unfair, but it isn't taking advantage of people when they are at their worst to make more money.
 
2013-07-07 08:05:09 PM  

Silverstaff: Yeah, it's as unfair


You can't win in this scenario because the costs of not paying the premium are fairly low. It's a relatively minor inconvenience to go stay slightly out of town so what you're really buying in THIS particular instance is convenience, not shelter. It's substantially different than gouging over a necessity like water where the consequences of being unable to pay in a disaster situation may be death.
 
2013-07-07 08:05:32 PM  
Rates in some NYC hotels can vary as much at 800 dollars per night depending on city occupancy and if there is a local convention eating up hotel rooms.
 
2013-07-07 08:06:41 PM  

OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?


First come, first served at the standard rates.
 
2013-07-07 08:06:57 PM  
For those screaming about the marketplace being so gosh-darned efficient with gouging, please show how all actors in the relevant markets are price takers, as your analytical framework is predicated on such.
 
2013-07-07 08:10:45 PM  

palan: MrEricSir: I'm guessing these rates are set automatically according to a formula based on occupancy rate of hotels in the area. Also, the reporters didn't ask the hotels if they were giving a discount to the victims.

Seems like the reporter is setting out to create an outrage story.

Also, is it the travelers that are stuck with the bill, or how many airlines are paying for stranded travelers?


As someone who was once stranded in Incheon by Korea Air, I can tell you that they do not pay for your hotel if they fark up.
 
2013-07-07 08:12:09 PM  
Fourth of July weekend.
Hmmm....
 
2013-07-07 08:21:12 PM  

Ivo Shandor: OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?

First come, first served at the standard rates.


Ethics have no place in capitalism.  If you can make more by screwing over traumatized people, you screw them over.  Period.  It's the American Way.
 
2013-07-07 08:38:39 PM  

Lionel Mandrake: Ivo Shandor: OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?

First come, first served at the standard rates.

Ethics have no place in capitalism.  If you can make more by screwing over traumatized people, you screw them over.  Period.  It's the American Way.


Exactly. It's the free market in action.
 
2013-07-07 09:07:42 PM  
I've seen that exact thing happen in Chicago when some storms cropped up in the evening, causing flights to pretty much everywhere get cancelled. I'd looked at rates earlier in the day while waiting for my flight to ORD (I was making a connection there), just out of curiosity in case something like that happened. They were average for the area.

However, once those storms hit and flights started getting cancelled? Everything was between $350 and $500, even Motel 6 and shiat. Crazy how they can do that so fast.
 
2013-07-07 09:19:40 PM  

grimlock1972: i understand supply and demand but i really feel automatic price controls should be activated in 100 mile area around a disaster and only released once the area has recovered sufficiently that price gouging is not going to work.

by price controls i mean frozen at the level 24 hour prior to the disaster and increases only allowed to accommodate legit raises in wholesale prices for an item.

i will never agree to profiting off the misery of others.


That sounds vaguely socialisty or communisty. Not knowing the difference, I'm gonna go with Hitler. Yep, this is something Hitler would have said.
 
2013-07-07 09:38:34 PM  
Sounds like supply/demand and july 4th. Even in other touristy cities where there was no plane crash, booking a last minute room for July 4th weekend was going to cost significantly more than normal.
 
2013-07-07 09:46:20 PM  

Ivo Shandor: OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?

First come, first served at the standard rates.


Jesus Christ.  The BART runs right into SFO.  There's absolutely no reason to stay at an SFO airport if you've rescheduled a flight for some time later.  If the local hotels jack up their rates, find one somewhere near any BART station.  Nobody has to stay at an airport hotel, especially not in San Francisco.
 
2013-07-07 10:07:10 PM  
If even Florida can figure out that gouging is a Bad Thing, and legislate accordingly*, why can't the left coast?

* save, admittedly, for two gas stations near the Orlando airport - but because they routinely charge $2 over the going rate, rather than hike rates around a hurricane, it's not "gouging".
 
2013-07-07 10:31:21 PM  

grimlock1972: i understand supply and demand but i really feel automatic price controls should be activated in 100 mile area around a disaster and only released once the area has recovered sufficiently that price gouging is not going to work.

by price controls i mean frozen at the level 24 hour prior to the disaster and increases only allowed to accommodate legit raises in wholesale prices for an item.

i will never agree to profiting off the misery of others.


---

Silly lib. If you impose regulation on job creators by saying they can't raise prices during a disaster, they'll just pass the cost along to the consumer by raising prices on--wait a minute.
 
2013-07-07 10:32:32 PM  
It's San Francisco, 3000 miles away from me. I don't care.
 
2013-07-07 10:40:38 PM  

John Buck 41: It's San Francisco, 3000 miles away from me. I don't care.


That makes you about 3000 miles away from me.  I don't care what you think.
 
2013-07-07 10:48:38 PM  
contact the franchisor of the hotel chain name. this business practice is frowned upon and action will be taken. franchisees are under strict contractual obligations. they are in no hurry to lose their 1 800 reservation system hook up or widely recognized chain name.
 
2013-07-07 11:02:47 PM  
I read the rate card on the back of the door in my Vegas hotel room and they list the nightly rate as $2500. Therefore they could offer a discount, but they weren't allowed to charge more. I suspect they have a similar rule in many places.
 
2013-07-07 11:31:34 PM  

Lionel Mandrake: John Buck 41: It's San Francisco, 3000 miles away from me. I don't care.

That makes you about 3000 miles away from me.  I don't care what you think.


We're cool, then.
 
2013-07-07 11:35:41 PM  
Sheryl Sandberg has stayed in a hotel.  Luckily she didn't last night.

Serious moment to give thanks.
 
2013-07-07 11:48:24 PM  

grimlock1972: i understand supply and demand but i really feel automatic price controls should be activated in 100 mile area around a disaster and only released once the area has recovered sufficiently that price gouging is not going to work.

by price controls i mean frozen at the level 24 hour prior to the disaster and increases only allowed to accommodate legit raises in wholesale prices for an item.

i will never agree to profiting off the misery of others.


You obviously were nowhere near the gulf coast after Katrina. Artificially low gas prices meant guaranteed shortages. Ditto for the so-called "gas crisis" of the early 1970s, when there were long lines at American gas stations, but no lines in Canada or Mexico.
 
2013-07-07 11:59:05 PM  

grimlock1972: i understand supply and demand but i really feel automatic price controls should be activated in 100 mile area around a disaster and only released once the area has recovered sufficiently that price gouging is not going to work.

by price controls i mean frozen at the level 24 hour prior to the disaster and increases only allowed to accommodate legit raises in wholesale prices for an item.

i will never agree to profiting off the misery of others.


Hell yeah, nothing that a shiat-ton of new governmental regulations won't fix.  I mean, there's never really be a way that could complete fark everything up, or be interpreted by some mid-level bureaucrat to screw everything up to a froth just to line the pockets of some of his buddies.... right?
 
2013-07-08 12:30:27 AM  

DrPainMD: Ditto for the so-called "gas crisis" of the early 1970s, when there were long lines at American gas stations, but no lines in Canada or Mexico.


I'm both Canadian and old enough to remember, and I can assure you that there were long lines to get gas here too.

/can't speak to Mexico
 
2013-07-08 12:39:09 AM  

rugman11: Jesus Christ. The BART runs right into SFO. There's absolutely no reason to stay at an SFO airport if you've rescheduled a flight for some time later. If the local hotels jack up their rates, find one somewhere near any BART station. Nobody has to stay at an airport hotel, especially not in San Francisco.


Yeah, but there's the likelihood of being shot and killed by the police if you take the BART.
 
2013-07-08 12:40:35 AM  
I know where I'd be camping out if they tried to gouge me like that!
 
kab
2013-07-08 12:43:03 AM  

skozlaw: Is this the thread where I'm told I'm a bad person for thinking that maybe money shouldn't always be everything?


This is the business tab, home of executive pay white knights, and staunch believers in infinite pie wealth mythology.   So yes, you're a very bad, bad person.
 
2013-07-08 01:33:57 AM  

KrispyKritter: contact the franchisor of the hotel chain name. this business practice is frowned upon and action will be taken. franchisees are under strict contractual obligations. they are in no hurry to lose their 1 800 reservation system hook up or widely recognized chain name.


They provide the automated systems that raise prices as bookings increase.
 
2013-07-08 06:15:17 AM  

Ivo Shandor: OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?

First come, first served at the standard rates.


As supply decreases and demand increases price goes up. Not a difficult concept. If I owned a hotel I would do the same thing. If they raise price too much people will refuse to pay. This is how the free market works. Not a difficult concept
 
2013-07-08 06:50:18 AM  
If there were price controls there would be an outrage story about how thousands of people were waiting around to get hotel rooms. The high prices are a good signal to go on somewhere else.
 
2013-07-08 09:39:02 AM  

Lionel Mandrake: Ivo Shandor: OptionC: For those screaming about "gouging", how exactly would you divvy up the hotel rooms when there are more people/families that want to stay in them than there are rooms/beds?

First come, first served at the standard rates.

Ethics have no place in capitalism.  If you can make more by screwing over traumatized people, you screw them over.  Period.  It's the American RightWay.


FTFY
 
2013-07-08 10:02:41 AM  
Maybe I missed it, but I didn't see any evidence in the article that anyone involved in the crash actually paid to stay at one of the named hotels.

Should we also be outraged that someone on Asiana flight 214 paid $3800 for their ticket while the person sitting next to them paid only $800 for the same flight?  I mean, this is the way pricing works when you are selling a fixed quantity of an asset (like hotel rooms or airplane seats): when demand is up, prices go up so there isn't a shortage, when demand is down, prices go down so that seats or rooms don't go unsold.

The reason for this price fluctuation is that unlike items like iPods (that sell for basically a fixed price), it's not easy to just make more of the thing being demanded when demand is high.

Those calling for the rooms to be sold at the "normal" price first come first serve don't seem to understand that a hotel room doesn't have a "MSRP". You can't define the "normal" price because it doesn't exist. Hotel room prices change on a daily or hourly basis, often by an automated formula, as they get booked. Add in Priceline, etc., and it gets even more complicated because the same exact room may be offered for sale at different prices through different channels! So should every hotel be required to sell you the room for the price they were offering on Priceline?
 
2013-07-08 12:47:50 PM  
Hotels near SFO jacked up their rates like crazy after the Asiana Airlines plane crash left hundreds stranded

Hopefully the state has strong anti-gouging laws and a willingness to enforce them.

YixilTesiphon: If there were price controls there would be an outrage story about how thousands of people were waiting around to get hotel rooms. [redacted Randian herpderp concept]


Except that there wouldn't be a shortage.
 
2013-07-08 02:20:23 PM  
Don't like it? Sleep in the street.

Problem solved.
 
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