They don't. You're assuming a lot of things. Extremely few people pay cash at a hotel (as even deposit would have to be in cash and held in place and refunded i

They don't. You're assuming a lot of things. Extremely few people pay cash at a hotel (as even deposit would have to be in cash and held in place and refunded in person). Vast majority pay with card. They're doing this because they can get away with it. Purely and simple. Large part of this 2% is extra profit.