What Is Your Decision in Managing Room Rates under Unexpected Circumstances?

Tens of thousands, likely millions of, travelers are stranded in airports around the world due to the volcanic eruptions in South Iceland. Saturday, I heard news about people who live close by Newark Airport extending their kind assistance to stranded passengers. They offer their homes to those extremely-exhausted travelers for showers and even a nap.

This morning, I also heard another piece of news about hotels charging outrageous rate to those travelers. For example, a hotel in Hong Kong Airport increased its room rate from €250, to €460 in the middle of the day, and then to €800 in the evening. A hotel room in Sydney Airport changed its rate from $150 Australian Dollars ($138 USD) on Friday to AU $350 on Saturday. I understand how revenue management works in a hotel, and I know better that managing a hotel is running a business. There is no way that a hotel will, or should, offer a free room. I just wonder if you are managing an airport hotel, how you would control the room rate in a similar situation. How about during a snow storm?

References:
USA Today: http://tinyurl.com/linchikwok04192010
The picture was copied from: http://tinyurl.com/linchikwok04192010P

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