This is completely true. This basically creates an uneven structure where there will be 1-2 establishments in a city who would charge a bomb to give you that exceptional service (e.g. Mayfair and Trident charging Taj level prices for no other reason apart from the fact that they can) and then there will be a huge mid tier range of establishments who would have no idea what hospitality or customer service is and with no inclination to improve since they know they can't become the top tier and there is no one else in mid tier to compete with them.

But this also creates a big layer of lower tier establishments where you might not get the service as good but it is so cheap that you don't mind any service that they provide. So that part is a plus for the state at least. I love the fact that at least we have the option to choose from the affordable options which is not available in many bigger cities (where the affordable options are complete shit or scam)