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Free rooms expected to return record profits
GENEVA, Switzerland -- In a surprise move to trump the competition, Traveller Hotel Group (THG), operator of 435 luxury resort and spa properties in North America, Europe and Asia, announced that it has completely eliminated charging for use of its guest rooms. "From here on out," said CEO Jean-Paul Chaphrau, "the price of all our rooms is zero. The rooms are free. Only a few fees will be added to a guest's bill on checkout."
It taking this unprecedented move, the company expects to increase its occupancy rate to nearly 100% and triple its revenues, which will be earned from a variety of incidental guest fees.
A source close to THG supplied the following partial list of fees associated with a typical free stay in a modest room at the company's property in Leon, France:
Additionally, city, district, regional, national, and value added taxes will be added as appropriate (typically 22 percent). So a one night stay, which used to cost €235, is now free with incidental fees being only about €351.
"Such an arrangement," noted Mr. Chaphrau "is a win-win for our company and our customers. Well, okay, at least for our company, anyway.”
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