most plausibly, minibar prices are so high because the sale of these items provides an indirect means for the hotel to target discounts to price-sensitive buyers.
In order to achieve high occupancy rates, hotels are under pressure to offer their room at competitive prices.
Many hotels, for example, offer lower rates for rooms booked on the internet, which is consistent with evidence that internet shoppers are more price sensitive than others.
because the hotel industry is highly competitive, hotels do not enjoy especially high profit margin.
To offer bigger discounts to price-sensitive guests,
a hotel must thus find ways of collecting additional revenue from others guest.
Hotels know perfectly well that offering minibar items inflated prices ensures that many guest will buy nothing from the minibar.
But they also know that guests who are less price sensitive will not be deterred by high minibar price . The added profits that hotels reap from these guests permit them to offer bigger discounts on room rates.
The discount hurdle in this case is having to forgo the convenience of minibar purchases.
Taking that step confers eligibility for the lower hotel bills that premium minibar prices make possible.