After 50 years in the accommodation industry with large hotels, nature lodges and bed and breakfasts, in my experience stand-by rates are normal. Any revenue received over and above the cost of the sale is gross profit and is good business. This is of course subject to such a decision meeting the overall brand strategy.
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I had a restaurant that was in a semi-remote location. The location on the water’s edge was the main reason that people chose to eat with us. Having made the journey they liked to spend a couple of hours at their table.
This meant that we only had one sitting for each meal time. Every seat was valuable to us and we had a fixed price menu regardless of how much people ate. In our advertising and at the time of booking we made it clear that if a human took up a seat then the fixed price fee was payable.
One day a diner, a medical doctor, complained about having to pay full price for his children quite loudly and publicly when the bill arrived. After some discussion I offered to follow the same policy that he does in his clinic.
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“Ok now I had to google the size of Tasmania.”
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Interestingly I am from Tasmania and have never heard the expression…
To my knowledge I made it up. Here in the US we would say someone insecure has a “big chip on his shoulder.” I just changed it up a bit. Tasmania popped in my head for some reason. I could have said Africa or Buckingham Palace or any number of large things.
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