Monday, August 16, 2010

Shouldn't the market decide motel tariff and terms?

What a terrible bunch of money-hungry capitalists the moteliers are in Napier - Fancy leaving a bad taste in a woman’s mouth by imposing a minimum night stay requirement during a high demand period. Surely this hapless woman has an entitlement according to her needs?

The cheek of moteliers picking and choosing accommodation reservations at will, hiking up fees according to demand AND imposing minimum night stays. Surely everyone in this utilitarian society are created equal and motels should be not be permitted to set tariff and conditions for rooms according to market forces?

Everyone knows that the free market is an outdated regime and the best way to allocate a scarce resource would be for motels in Napier to allow Venture Hawkes Bay to sell rooms on behalf at a knock-down tariff as dictated by a small sub-committee of ex-school teachers, councilors and other self described tourism and marketing experts.

The commissions charged to Napier moteliers by Venture Hawkes Bay for taking on the burden of managing motel reservations could make up for their "oversight" of blowing the budget by $500k ;-)

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