Comment Re:Backward (Score 1) 72
It's also possible that they're price-sorting. That is, people staying at expensive hotels have more money (duh). They're willing to pay more for luxuries, many of them hard to observe (more staff, more frequent replacement of linens [and more in the rotation], more expensive furnishings, etc.) The people who pay for such things have more money and you can use that to try to up-sell them.
If they're paying $200 a night for four-star deluxe room, they've got $10 to kick in for wi-fi and not even really notice it. And you know that they didn't pick the $69 EconoLodge down the street. They'll assume that they're getting more bits, and that the service is better maintained; they're likely not to check. They do know that they're perceiving an overall experience that they like better, and they're willing to pay a substantial premium for it. That's not right or wrong, if they're getting what they want, but it does expose their pricing preference. That tips their hand and makes them pay more than they might otherwise.
I think it's similar to Starbucks. Even if you like it better, is it really "four times better" than the 7-11? It doesn't matter. They know that you're willing to pay 300% more for the coffee and will price everything else to match, because you're there, regardless of what it costs them.