ehbowen
Engineer
Allow me to double-post (please...but I have no objection if the mod team combines this as an "edit to add"): I work at a thousand-room plus convention hotel. We're expected to provide certain amenities. What about the small boys, say with only a couple of dozen rooms? I submit for your consideration the Izaak Walton Inn in Essex, Montana. It's one of a very few places between Whitefish and Browning where you can purchase a sit-down meal between October and April. That's one of the reasons why BNSF still uses the former Great Northern hotel for snow crews in the winter...and I'm sure that when there's snow in Marias Pass and the crews are rocking and rolling that their restaurant does quite well. But I stopped in there with my father during the off-season for a quick visit, and I suggested to the manager that we might stay for dinner "if we can get a reservation". (The dining room was completely empty.) He said, deadpan, "I think we can arrange that," and the two of us had a very nice dinner. Yes, we paid more than we would have at Denny's or similar, and if you walk in and buy a steak at my hotel you'll probably pay more than you would at Outback, but in neither case would you feel "ripped off" unless you're an absolute penny-pinching curmudgeon (I apologize for bringing Mica into this...).
So, think about it. Did we pay our "fair share" of the chef, the waiter, the manager, the space, the utilities, upkeep on the kitchen equipment, plus the raw food when we walked into the Izaak Walton for a brief afternoon visit? No chance. Will you pay your "fair share" at my hotel if you walk in for a midnight burger following a Rockets game which runs into triple overtime? Not likely. If you're staying in either establishment you're paying through the (admittedly, high in both cases) room rates you pay, but what about those who walk in off the street? Do we or IWI turn away walk-in business because the customer is not paying the built-in subsidy? Not a chance! We love walk-in customers, and bend over backwards to make them feel welcome! Because, even though we may "lose money" on them in the eyes of some accounting standards, the costs are already baked in to our bottom lines and we simply can't cut them further without completely dropping out of the tier of the standard of service which our "profitable" customers expect. The added revenue which they do provide is a net positive to our profit and loss in both cases. We say, "Thank you for coming and please do come and see us again soon"...and we mean it. (Incidentally, do you want to take Mom out on Mother's Day without advance reservations and without a two-hour wait? Look for a full-service hotel in your vicinity. You're likely to be welcomed with open arms and with no wait to speak of at all.)
If I have to spell it out, this is exactly analogous to the role of the Amtrak coach passenger who might want to eat in a full service diner. Yes, you can charge more than he might expect to pay at Applebee's or IHOP; it would be unreasonable to demand otherwise. But the fixed cost of providing full service dining is (or should be) a given with any overnight train (and, I would argue, a long-distance daytime train covering two or three meal periods such as the old International between Chicago and Toronto). The private railroads, at least when they were being competently managed, understood this and baked a portion of the fixed cost into their ticket prices and then set the marginal cost of the meal itself at a level which optimized use of the fixed resources. You don't want the prices set so low that the staff and food storage capacity is overwhelmed; neither do you want it so high that only those who are splurging on "the trip of a lifetime" are interested. But I fear that "competence" and "management" are oxymoronic in the current Amtrak climate....
So, think about it. Did we pay our "fair share" of the chef, the waiter, the manager, the space, the utilities, upkeep on the kitchen equipment, plus the raw food when we walked into the Izaak Walton for a brief afternoon visit? No chance. Will you pay your "fair share" at my hotel if you walk in for a midnight burger following a Rockets game which runs into triple overtime? Not likely. If you're staying in either establishment you're paying through the (admittedly, high in both cases) room rates you pay, but what about those who walk in off the street? Do we or IWI turn away walk-in business because the customer is not paying the built-in subsidy? Not a chance! We love walk-in customers, and bend over backwards to make them feel welcome! Because, even though we may "lose money" on them in the eyes of some accounting standards, the costs are already baked in to our bottom lines and we simply can't cut them further without completely dropping out of the tier of the standard of service which our "profitable" customers expect. The added revenue which they do provide is a net positive to our profit and loss in both cases. We say, "Thank you for coming and please do come and see us again soon"...and we mean it. (Incidentally, do you want to take Mom out on Mother's Day without advance reservations and without a two-hour wait? Look for a full-service hotel in your vicinity. You're likely to be welcomed with open arms and with no wait to speak of at all.)
If I have to spell it out, this is exactly analogous to the role of the Amtrak coach passenger who might want to eat in a full service diner. Yes, you can charge more than he might expect to pay at Applebee's or IHOP; it would be unreasonable to demand otherwise. But the fixed cost of providing full service dining is (or should be) a given with any overnight train (and, I would argue, a long-distance daytime train covering two or three meal periods such as the old International between Chicago and Toronto). The private railroads, at least when they were being competently managed, understood this and baked a portion of the fixed cost into their ticket prices and then set the marginal cost of the meal itself at a level which optimized use of the fixed resources. You don't want the prices set so low that the staff and food storage capacity is overwhelmed; neither do you want it so high that only those who are splurging on "the trip of a lifetime" are interested. But I fear that "competence" and "management" are oxymoronic in the current Amtrak climate....
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