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Why Do Luxury Hotels Charge Extra for Wi-Fi? Mental Accounting and the Psychology of Pricing

  I noticed a phenomenon: Internet access is usually free in hotels with relatively low room rates, while Internet access in hotels with higher room rates, especially some five-star hotels, sometimes requires additional payment.
  On my most recent business trip to Italy, I stayed at a famous five-star hotel in Milan. When checking in, the waiter told me that if I use a laptop to access the Internet in the room, I need to pay an extra 27 euros (approximately RMB 210) per day; if I use a mobile phone to access the Internet, I need to pay an extra 9 euros (approximately RMB 210). 70 yuan); if you use multiple devices to access the Internet, you need to pay according to the increase in the number of devices.
  It does sound unreasonable. I have already paid a high price for the room, but I have to pay an extra fee for a common service such as Internet access. What’s more, Internet equipment is a fixed investment for the hotel, and one more guest will not increase the hotel’s cost.
  In this case, why do so many hotels still choose to charge separately for Internet access? Is this an accident? Are there any laws of consumer behavior that support this approach?
  If you think about it from the perspective of “mental accounting”, this problem is easy to understand. Generally speaking, staying in a luxury hotel is a hedonic consumption. People’s control over hedonic consumption is relatively loose. It’s like having a candlelight dinner in a high-end French restaurant. You are unlikely to mind how expensive a glass of champagne is because you are mentally prepared for the expense. .
  And if you stay in a budget hotel, this is practical consumption. People have tight control over practical consumption, and are unwilling to consume once it exceeds a certain standard. Therefore, if a budget hotel charges separately for Internet access, it will easily cause dissatisfaction among guests.
  As a result, the above interesting and contradictory phenomenon has emerged: luxury hotels make you pay higher prices, but in the end they charge separately for various services provided, such as breakfast, Internet, and printing; budget hotels provide you with preferential prices, and then Many services are included. In the final analysis, this is still the role of “mental accounting”.

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