Rabbit, yes it seems that there may be the poor speedway fan dotted about who would be willing to pay over the odds for a room, However look at it another way, if all hotels took the same stance without any reaction from potential paying patrons where would that leave the majority of fans singles,couples or families when they were planning their budget for any such event.
Consider this, if you had made reservations to go see, lets say, a major testimonial meeting, you have made the kids, friends and colleagues aware, you get nearer the time and find out the cost of the tickets have gone up 60/70/80%, the hotel rooms the same, the restaurant the same, where does that leave you.........except more out of pocket than you expected.
Yes i do understand the market forces criteria you used previously, but understand that if the market is not boyant, then the forces are not applicable, sometimes you have to prolong the golden goose if you wish to have many eggs for many breakfasts.