Can Hotels Charge more than MRP? These are the most common questions being raised in the Minds of many people but the actual reason behind Hotels and restaurants charging more than MRP on the Water as well as on the Packed Food is that the Hotels provide good Ambiance, amenities, as well as other services, are so well so all the Hotels charge for their service and the amenities they provide and thus they don’t charge any extra amount on the Water or the Packed Food but instead they charge for the services and the facilities they provide.
Can Hotels Charge more than the MRP?
Hotels always want to charge more than the MRP, but is it ethical for them to do so? In some cases, yes. Hotels can charge a higher price for their services because they can negotiate better deals with their suppliers. The hotels also can offer lower rates to attract more customers which allows them to make a profit. So, in the end, hotels can charge more because they can negotiate and offer lower prices.
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The question often arises as to whether hotels have the right to charge more than the printed price mentioned on the company website. This is not a simple question to answer. When booking a hotel, it pays to be extra careful and read all the fine print. This blog is going to take a look at some of the factors you should take into consideration when calculating whether you should or should not pay the full MRP of a hotel.
As the restaurants and the Hotels are a Kind of Composite supply which means they also provide the Facilities, services, Ambiance, and other services too thus according to the law Hotels and Restaurants can charge more than the MRP for the Packed Food and water they Provide as along with this they provide other facilities and services along with the ambiance and the amenities thus according to the law in case of the Composite supply they can charge more than the MRP due to the other facilities being provided.
As the Hotels provide the ambiance and the Cutlery so the provisions of the law are not applied to the Hotels and the Restaurants and thus they can’t be prosecuted for selling Items above MRP.
Is it Legal to charge More than MRP?
Reserving a hotel room is the most straightforward part of any traveler’s trip. When people are booking their hotel, they want to know what their rate is exactly. The hotel must provide the rates for them to see the cost. This blog post will discuss the legality of how hotels can charge more than the MRP.
Firstly MRP means the Maximum Retail Price of which no Retailer can charge more than the MRP to the Consumers and thus if the consumer is charged more than the MRP then a Fine of more than 10 Lakh Rupees is taken in India. And may also lead to the cancelation of the Licence. Therefore it is illegal for shopkeepers or Retailers to charge More than the MRP.
But in the case of Restaurants or Hotels, it is legal for them to charge More than the Maximum Retail Price. As Hotels, Restaurants, and theatres are not making simple sales like Retailers as they provide extra service to the Customers. Thus they not only charge for the product but also charge for the service they provide.
Thus Hotels and Restaurants can charge more than the MRP because they provide both the products and the Ambience and the other services at the same time and it comes under the Composite Supply.
So it is a Kind of Composite Supply which means the sale of Goods and services Both at the Same time.
Are 5 Star Hotels allowed to charge More than MRP?
Yes, 5 Star Hotels are allowed to charge More than the MRP in India. Because when we get Water Bottles or Packed Food items from a shop we are not charged more than the MRP. But in the case of Hotels and Restaurants if we take a water bottle or any kind of Packed Food. The waiters in the Hotel or the Restaurants Serve the water in a Glass as well as they also provide an ambiance that gives us Comfort and is enjoyable thus due to which they are allowed to charge More than the MRP because of the Facilities they provide.
And they provide the product as well as services at the same time due to which they are allowed to charge More than the MRP.
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Is taking a service charge on packed products over MRP in hotels valid?
Yes, it is allowed to take service charges on the Packed Products over the MRP. According to the law in India, it is made allowed for the Restaurants and the Hotels to charge More than the MRP as it Comes under the Composite Supply which means the Restaurants and the Hotels provide the Product along with the ambiance as well as provide services to us, so thus it is legal for them to charge More than the MRP.
Thus they can take service charge on packed products over MRP.
We hope you enjoyed our article on whether hotels can charge more than the MRP. We know that this is a subject that many people are curious about and are interested in hearing more about. We feel like this is a great post to help guide you through if you are trying to figure out whether hotels can charge more than the MRP.