I read this article this morning and just had to share it with all of you.The brits were slating SA for raising prices prior to the World Cup and in the far reaches of my little brain I kept thinking- Just you wait Enry Iggins, just you wait... Let's now wait for the security issues (which we did not have I might add) to crop up. And with Mr Cameron's fiscal cuts coming along nicely. Show me a South African hotel which doubled its room rate and I'll show you...
Hotels are set to more than double their prices during the 2012 Olympic Games, but doing so could cause long-term damage to corporate business an expert has claimed.
Basing its predictions on data gathered during the Vancouver Winter Olympics, market intelligence company Rubicon believes hotels in the capital (London) can expect to see profits leap during the summer of 2012.
However, hoteliers are being warned to watch their margins so as not to turn off business from the corporate sector, which is expected to plunge by up to 80 per cent during the period.
Andy Storey, managing director for Rubicon Europe, said that high room rates could potentially damage business in the long term. "Generally hotel owners fail to put enough attention on the shoulder seasons either side of sporting events, and this is what causes them to do worse than in ‘normal' years," he said. "It is no surprise that hotels will be busy during the event itself, but London properties should heed warnings and set pricing and market accordingly."
Hotels are set to more than double their prices during the 2012 Olympic Games, but doing so could cause long-term damage to corporate business an expert has claimed.
Basing its predictions on data gathered during the Vancouver Winter Olympics, market intelligence company Rubicon believes hotels in the capital (London) can expect to see profits leap during the summer of 2012.
However, hoteliers are being warned to watch their margins so as not to turn off business from the corporate sector, which is expected to plunge by up to 80 per cent during the period.
Andy Storey, managing director for Rubicon Europe, said that high room rates could potentially damage business in the long term. "Generally hotel owners fail to put enough attention on the shoulder seasons either side of sporting events, and this is what causes them to do worse than in ‘normal' years," he said. "It is no surprise that hotels will be busy during the event itself, but London properties should heed warnings and set pricing and market accordingly."
By Becky Paskin - ehotelior.com
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