Dead Sea- Overpriced?

In short answer, yes. Hotel rates at the Dead Sea are considerably higher than comparable hotels in Eilat. For example, the Isrotel Dead Sea is about $404 per night, while the Isrotel Agamim Eilat or the Isrotel Royal Garden average $249 and $324 per night, respectively. Similarly, the Le Meridien Dead Sea is nearly $100 more than the Le Meridien Eilat. Why is this? Granted, the Dead Sea is closer to Jerusalem, Tel Aviv, and central areas, and of course the sea is salty, but are those reasons for the $100 markup? Especially since the adventuring, shopping, and hiking, (as well as good weather) that is consistently found in Eilat is missing in the Dead Sea. But, tourists still flock to the Dead Sea and gladly pay up. Of course, the Dead Sea markup is not half as drastic as the Herzilya markup, but at least Herziliya is upscale and beautiful, with great beaches and a central location. Still, Eilat seems to be the best bet.
Please note: Unless otherwise indicated, IsraelGuest is simply posting its own opinion, based on TripAdvisor reviews and other indicated sources. IsraelGuest representatives have not been guests of the hotels.
So why do people go to the Dead Sea for a stay? Please post your comments below.