07/20/2026
Let's talk about it. Why do hotel rooms seem so pricy in Cooke City during the summer months? I'm hoping this post can offer some insight.
There are quite a few reasons, actually. We'll go over the most obvious reasons initially. The first reason would be our proximity to Yellowstone National Park. We're four miles from the northeast entrance to the park, making us a "tourist town." And tourist towns generally come with tourist town pricing on everything -- lodging, food, souvenirs, fuel, etc. For us hotels in Cooke City specifically, we have from mid-May through September to generate enough revenue to sustain us for the other seven and a half months. I think I can safely speak for all hotels and motels in the town when I say that we don't make much money in the winter, if any at all. If we break even in the winter, we're doing good. And because two of the three ways to Cooke City are closed in the winter, we have to lower our rates during that season just to get people here. I would say about 99% of our winter guests are winter sports enthusiasts whose heated goggles cost way more than the hotel room they reserved. Those are the obvious reasons.
Let's talk about the other reasons which may not be so obvious. The world has gone to doing everything online, including making hotel reservations. About 90% of our reservations come through third-party, online travel agencies (OTA). The other ten percent comes through direct bookings. Here's the skinny when it comes to making reservations through an OTA. When you make a reservation through an online travel agency (OTA), they charge us a commission on every reservation. That commission can be in the rage of 15% - 30% depending on the specific OTA, contract, and program. Remember that 90% of hotel reservations are now made this way, and we price our rooms to include that commission. We encourage our guests to book directly. Booking directly with us helps to keep prices lower, offers better service, and more flexible cancellation and modification policies.
The second reason that hotel room rates may seem expensive during the summer months is one you probably wouldn't think about. There is no cellular service in Cooke City of any kind, from any carrier. When there is no cell service, internet becomes one of the most important things in the world. We get it, we truly do. Getting internet service of any good quality in Cooke City is EXTREMELY expensive for hotels. We have two options for internet in Cooke City. The first is Century Link with its antiquated copper cables. When Century Link is at its very best, it's absolutely TERRIBLE. We choose to go with Starlink satellite internet due to the quality and reliability. But when I say it is an EXPENSIVE amenity to have in Cooke City, I truly mean it. The price of a commercial Starlink plan comes with great quality and reliability, but it does not come with unlimited data. Our priority data is usually completely used up within the first two weeks of a billing cycle. For the last two weeks of the billing cycle, we and other hotels in the area pay more in overage costs for internet than three people would pay in a mortgage payment and car payment combined -- just in overage costs, not including the base monthly rate. And the cost keeps going up . . . and up . . . and up. Starlink is really putting it to us and raking us over the coals in these small communities. They know we have no other option. This is why we ask our guests not to use streaming services as it rapidly uses up data. It has now gotten to the point where Alpine Motel and other hotels in town are considering adding a separate small surcharge just to help put a dent in the internet bill every month. And some may say, "Well this hotel, or that hotel, doesn't seem to have any problems." And you would be right. This hotel and that hotel only have fifteen rooms or less. We three larger properties have over thirty rooms, each with four people in the room, on four devices, depleting the data quicker than we can replenish it. I don't think a small internet surcharge of $5 or $7 a day is unreasonable, if it will help to keep room rates lower. But, I'm curious to know what you think. Let me know in the comments.
I can't forget to mention the water rate increase in Cooke City which is targeting the larger hotels and restaurants. If a business uses more than 20,000 gallons of water per month, the water usage rate has recently increased by 50%. That's right 50%. Alpine Motel has five water meters. And just one of them pushes 40,000 gallons per month during the summer.
And I also can't forget to mention that the Montana Department of Revenue now assesses commercial properties based on an income approach to value, instead of the traditional approach to value. That means your property taxes are based on what your potential income is. They base it off of being sold out every single night of the year, which is impossible in a seasonal tourist town such as Cooke City.
So, there it is. I hope I've been able to share some information and offer some insight as to why hotel rooms seem pricy here. I would love some feedback. Keep it kind, polite, and constructive, please.
Also, this image was AI generated by ChatGPT. This is not the actual Alpine Motel in Cooke City, Montana. The lady in the photo is fake. And that is not my ugly mug behind the front desk. He does have way more hair than me, though.đŸ˜€
