Stephen Bleach
Download 'Too Hot', an exclusive Specials track from iTunes

Everyone knows that hotel phone charges are steep, but I realised they’re nothing less than a full-blown rip-off when I was checking out of the Luxor, in Las Vegas. I’d called London from the phone in my room. Well, it would have cost 90p a minute on my mobile. How much worse could a land line be?
Try this: for 15 minutes, the Luxor tried to charge me $120. (I still have the bill – I’m thinking of framing it.) When I went red, growled and foamed at the mouth, they reluctantly knocked 60 bucks off.
The next day, I flew home, and what did I read? The Lanesborough, in London, a considerably swankier hotel than the Luxor, has made in-room calls to the USA and Europe free. Yes, free, gratis, buckshee, a veritable dial-all-your-pals-in-Albuquerque orgy.
How is it done? Has the Lanesborough got something on the high-ups at BT? I called the hotel. “There’s no trick to it,” I was told. “We still have to pay for the calls, but we’ve decided to pick up the cost.”
Laudable, but what exactly is that cost – for a call between, say, London and New York? You or I would pay 15p a minute with BT, or just 3p a minute from a budget supplier such as Onetel; New Yorkers can get calls the other way for 8 cents a minute from AT&T. But businesses do much better.
“It’s about 1p-2p a minute,” says Alan Burkitt-Gray, the editor of Global Telecoms Business magazine. “Big companies such as hotels can negotiate very cheap deals.”
So, maybe it’s two cheers for the Lanesborough, rather than three. Still, if they can do it, why can’t all the rest? We decided to find out which hotels give their guests a fair deal, and which are blatantly profiteering. Armed with Burkitt-Gray’s London-New York price guide, we called the reception desks of a range of hotels in each city and asked what they charged to call the other. It was staggering.
“NEW YORK is £3.95 a minute,” said the lady at the London Ritz brightly – in fact, she sounded rather proud of it, as if she were talking to a shareholder who’d be getting the money, rather than the sap who’d be paying it. The biscuit, though, was smugly munched by Claridge’s. “Calls to New York are £4.95 per minute, sir,” the concierge coolly informed me. I gurgled faintly. “And calls within London are priced at 95 pence per minute. If you’re the type of person who objects to us robbing you blind, frankly we don’t want you here.” Actually he didn’t say that last bit, but the tone in his voice did.
It’s worth mentioning Blakes, too, for a nice combination of opacity and greed. They didn’t seem to know exactly what they charged, but happily confided that American guests calling home ran up bills of “£400 to £500, easily”.
Maybe you’d expect all this from the poshies. What about the trendy end of the market? Sanderson – “the hippest hotel in the world”, according to GQ – weighs in at £4, and the celebs hanging out at the Metropolitan pay £2. Budget? The likes of Travelodge don’t have in-room phones, but the Holiday Inn Express in Southwark does – and charges a less-than-cheapo £1.30.
Over in New York, charges are more complex – connection fees, taxes, fluctuating rates – so we asked the front desks for a ballpark figure for a five-minute call. The worst offender was the themey five-star Dream Hotel, which didn’t quote exact fees, but said: “It’s $10.81 for the connection, then roughly $60 for five minutes.” Dream? Nightmare.
Ian Schrager’s achingly trendy new Gramercy Park left us hanging on for seven minutes before saying: “It’s in the region of $55-$60, sir.” At those rates, that hold-music rendition of Lullaby of Birdland would have cost about $80.
The London NYC gives calls to London free, but it’s a bit of a gimmick, capitalising on the name: other calls are pricey. The best was Radio City Apartments, a neat budget place on 49th Street, which sells phone cards to use from your room phone – $5 for 100 minutes to London. A fair deal at last. HOW DO the hotels justify their prices? Have they no shame? Well, yes, it appears a few have. After our buzz around the front desks, we rang the management at the worst offenders to ask whether this was their idea of value. Some (stand up, the Dorchester) wouldn’t comment; others (take a bow, Dream Hotel) just didn’t call back. Perhaps the communications budget wouldn’t stretch to it.
The Ritz, though, came out fighting: “Our service charges are calculated to cover the costs incurred in maintaining efficiency. Our telephone technology includes the latest and most sophisticated equipment available.” Hang on, didn’t Alexander Graham Bell invent the telephone in 1876?
The very nice PR director at Claridge’s sounded a bit put out: “I’m surprised to hear we’re the most expensive. We’d expect to stay in line with the five-star market. I really don’t have any more to say to justify the cost.” Sanderson and Gramercy Park also used the “Everyone else is doing it, so why shouldn’t we?” argument.
But one place geta our phone vote: the midmarket Hoxton Hotel, in Clerkenwell, opened by the Pret A Manger tycoon Sinclair Beecham last year. New York? Five pence per minute. Local? Three pence per minute. That’s more like it. I called Beecham. He’s a garrulous type.
“Look, I can get calls to New York for 2p a minute. I want to make a fair profit, so I charge 5p. You say people are charging £5? It’s insulting. Why would you do that to a customer, charge them 250 times what it costs you? They’re corporate muggers. You should value your customers, but that’s treating them like suckers.”
Quite. Look at the table (left) and you’ll see there’s no rhyme or reason to the charges. They’re not related in any meaningful way to what hotels pay for calls. They’re simply a measure of how blatantly, rapaciously greedy they are – and, presumably, how stupid or submissive they think we will be when they present the bloody outrageous bill.
So, are we stuck using our mobiles, with their slightly less outrageous roaming charges? Here’s an alternative plan: assuming they ever let me into a posh hotel again, I’m going to use the phone and ignore the bill, offering a reasonable sum instead – 15p a minute to New York is more than fair. If enough of us do it, they’ll have to get real. Come on – they can’t sue all of us, can they?
Additional research by Helen Brooks
The list of shame
LONDON HOTELS
Charge for a five-minute call to New York
Claridge’s £24.75, The Savoy £20, Sanderson £20, The Ritz £19.75, The Dorchester £17.25, Great Eastern Hotel £15, The Metropolitan £10, MyHotel Bloomsbury £7.50, Holiday Inn Express £6.50, One Aldwych £6.25, Hoxton Hotel 25p, The Lanesborough - Free
NEW YORK HOTELS
Charge for a five-minute call to London
Dream Hotel $70.81, Gramercy Park $55, The Mercer $54 60, Thompson $50, Hotel Chelsea $35, Trump Tower $32.50, Waldorf-Astoria $20.63, Four Seasons $17, W Times Square $14.95, Hotel on Rivington $9.75, Dylan Hotel $7.50, Radio City Apartments 25c,
Figures supplied by hotel front desks. Some charges approximate
The mobile option
SO, ISN’T the lesson just to use your mobile? It may be a better option, but it’s usually expensive too – much more than a fairly priced land line would be. There’s currently no limit on what companies can bill for roaming calls, but in August, the European Union will bring in a cap on charges – 33p per minute to make a call, 16p to receive one. It will apply only in the EU, so check your plan before you dial from elsewhere.
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more



Free luxury travel brochures from specialist tour operators. Find your perfect holiday
Worldwide holidays from Times Selects. View our e-brochure and check out our superb collection of escorted tours
Advertise your home to the best travel audience on Times Online and VacationRentalPeople.com
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
We supply free broadband and call charges in Europe or America are charged at five cents per minute.
Communications are part of the service and should be factored into the overall room charge. I think its disgusting to find the rates these hotels charge. But its the guests who pay the rates who allow it to keep happening.
Vote with your feet ask what the rates are express your disgust and stay at more service centred businesses
New Continental Brussels
stephen, brussels, Belgium
Stephen, could not agree more, Was somehow seceretly hoping to have discovered from the article some reason for the excessive phone charges, but of course there arent any apart from greed, and an historic gulibility of ours to put up with it. Its shameful to an industry which is meant to be about hospitality. I sincerly hope it changes.
michael S, london,
A newer version of the phone rip off is the cost for Internet connections. If coffee shops and bars can offer free wireless connections to their customers why to some hotels charge 15 quid or more? OK I know that is for a 24 hour service and you can get cheaper deals for an hour but some hotel chains such as Radisson do give free Internet to their guests.
John Alexander, Acton, UK
just spent 2 weeks in Miami calling home every other day for long periods, spent only £3 using Skype, a laptop & free wi-fi. Why give any money to greedy hotels,
Mike Slattery, Stockton on Tees,
A relatively simple solution if you carry a laptop, and many of us do, download Skype and then use your laptop anywhere you have an internet connection to make calls either to other computers (when it is free) or from the laptop to a telephone or mobile (US to The UK costs about .01 cents per minute)
Ian, Frederick , MD USA
I once stayed at a hotel in Kensington and had to make about 12 calls. The bill-1,000 pounds.
Annie, London,
I was once charged $65 dollars in a Cincinnati hotel for a total of 10 minutes calls to the UK during a short stay. After much arguing the manager eventually came down to $15.
john turner, Leicester,
London hotels overcharging clients?Are you sure?I'm in a state of shock at this revelation.
john chandler, southampton,