Hotels suffer as sky hikes TV fees

By Angela Jameson

SMALL hotels are to be charged up to double the previous rate to receive Sky TV from next month, just a few weeks after some of them signed up at the previous tariff.

Small hotels will suffer despite assurances given by the broadcaster in July that it would not raise rates (Caterer, 31 July, page 9).

The increase, which introduces a minimum licence fee of £90 a month, takes effect from 28 December.

Smaller hotels will suffer most because Sky's charges are based on a combination of rooms served and channels offered. Some hotels have paid as little as £35 a month previously.

Antony Davis, director of the 10-bedroom Mill House Hotel in King's Norton, Birmingham, said: "With just 10 rooms it is very hard to justify the expense. But we've listed Sky in all the guidebooks now so I suppose we have to keep it for another year," he said.

Phil Philips, technical services manager at the British Hospitality Association, which last year complained to the Office of Fair Trading about Sky TV's price rises, said: "They are holding a pistol to the heads of small businesses."

A spokesman for Sky TV said the introduction of a minimum fee made the pricing system fairer, and added: "There has been no increase for hotels for five years and the average price increase now is just 20%, so that is well below inflation over five years."

David Randolph, owner of the 15-bedroom Nuthurst Grange hotel, said: "Sky TV is a facility which guests expect now and [Sky] know they have us over a barrel."

Russell Pendregaust, group operations manager of the Hatton Hotel Group which has three small hotels, complained that he received no warning of price rises when he signed up to Sky two weeks ago.