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February 2010



Hello

CapeInfo's newsletters have always been known for forceful views and informed comment.  While we're never mean-spirited, we certainly don't pull any punches.  Some disagree with us but respect our views and integrity.  This month we're tilting at the windmills of foolishness that have gripped South Africa.  We do want your comments please – especially if you're one of those who rarely comments publicly.  Click here to have your say and read what others say.

There are two kinds of service providers when it comes to the 2010 World Cup – the vultures, chasing the roadkill, and the nurturers who build national tourism in the long term.  We don't buy the "law of demand" in exceptional circumstances. Do prices triple in Cape Town over the weekend of the Argus/Pick n Pay Cycle Tour when the city is full?  Are those hotels still standing in Haiti justified in charging rescuers and journalists the earth... because they can?  No, life on this planet demands responsibility, and it is an immutable law of nature that every action has a reaction. Right now, South Africa's nurterers are winning.

Click here to comment.

2010: What rates? How many bookings?
Our second national accommodation tracking survey started in February against the background of MATCH having released 441,695 room-nights due to the lack of demand or inappropriate offerings and the Competition Tribunal investigation into price-collusion on World Cup airline fares.

The first survey had 471 responses, thanks to the support of Cape Town Tourism, Fedhasa Cape, the Guest House Association of SA and Prince Alfred Tourism! Knysna Tourism said they would ask members to participate but we saw no evidence that it happened.

We're working hard at getting broader national representation and we hope Johannesburg and Kwazulu-Natal accommodation establishments will add their stats, with others following. If you are have accommodation establishment please kick butt at your local tourism office. We need your input.

  • Click here for the summary of the January Survey (which is now closed).
  • Click here for the summary of the February Survey (which closes on Feb 28).

What's as interesting though are the comments that were added when responses were made on CapeInfo. (Cape Town Tourism members respond on the CTT website.) Most of these are at the end of the January survey result summary or the actual February survey form. (If you have an accommodation establishment in SA only, and your results have not been added, please do go ahead and submit your responses. Surveys are anonymous but we do record IP addresses and cookies are used.)

The real value of monthly tracking surveys is that we can follow changes in bookings and prices being charged.  Just before this newsletter was sent out, the number of February responses was just under 300 compared to the 471 for the whole of January, so it is premature to compare the monthly statistics.  Looking at an individual month's results only tells part of the story, which is why we are repeating these surveys monthly.  But there are already some interesting figures.

Room rates & confidence in World Cup legacy coming down

Difference Jan survey Feb survey
Unchanged Establishments with no bookings yet 55% 55%
Big drop Establishments charging normal winter or peak season rates 32% 55%
Confidence drop Responses rating WC beneficial impact 7 or higher 75% 57%

Now to tread on ice... the drop in confidence appears to come from the fact that other organisations have started asking their members to participate in the survey, and their confidence in the legacy factor is far lower.  This is a stat to watch in future and identify where it comes from more clearly.

While they do need to have their ducks in a row, those with no bookings should not be too worried.  Bookings will only follow the allocation of tickets and the next allocation takes place on February 5.  And the following wave of bookings follow the next round of FIFA ticket sales.

Click here to comment on this.


2010 World Cup Fair Deals – a reminder
World Cup Fair Deals
We want to help fans find the best deals as well as those accommodation establishments that are offering value for money.

CapeInfo has introduced World Cup Fair Deals as a category in the Directory search box. Select that as an option when you make your search and you'll get a list of establishments that guarantee that their World Cup rates are the same or lower than their standard peak season rates.

Accommodation establishments offering Fair Deals are also identified by the World Cup Fair Deal icon.

Note to accommodation establishments on CapeInfo: If your World Cup rates are current peak season or below, please select this option in your administration page.


Click here to read A Spaniard in the Works

Much of our comment on 2010 World Cup appears in the CapeInfo blog – A Spaniard in the Works and the following recent stories relate mainly to the World Cup. Click here to read the full stories. Each story has a link for comments just below the heading and we'd love to hear your views.
Our Wordpress blogs are one of the last items still to be integrated into the website's content management system.  That was due to take place just before last Christmas and we're holding thumbs it will happen in the next month.


Tracking surveys prove value; now for the global Fans Survey!
CapeInfo's accommodation tracking surveys have proved their value, not only in measuring what's happening across an industry, but also as a forum to share information and influence change. The new global Fans Survey will build on this, making contact and getting to know fans before they arrive.

Few people will take part in surveys unless they see benefit or there is entertanment value. CapeInfo's surveys aim to provide participants with immediate benefit.

Our new global Fans Survey will get to know the fans, their needs, concerns and desires before they set foot in South Africa. We'll also help them make the most of their trips. Trial surveys will start testing in the next month in key foreign markets.

Profile of 2010 World Cup fans
Forecasting is either tempting fate and an act of utter foolishness, but then some crystal ball gazing (with the benefit of wisdom and experience) may shed some light on our forthcoming visitors.

Well, the first prediction is a relatively easy one. Two-thirds of all fans, or spectators at matches, will be South Africans. That's who most tickets are being sold to. So forget about hordes of dollar-, sterling- and euro-flush foreigners banging your doors down. If you're in the travel and hospitality industries, you better be catering for South Africans first!

Will Fans stay outside the Host Cities?
CapeInfo most ambitious survey yet is being prepared – talking to fans before they visit South Africa while they make their preparations, discovering their perceptions, concerns and questions.

It will be conducted in association with global partners in key markets and a follow-up after World Cup is also planned to see if the fans became fans of South Africa too.

Cape Town Tourism is working with CapeInfo on this to get to know the fans before they arrive, and we hope that SA Tourism and others will get involved too.

A Politician's Foefie*
Way back in 2002, CapeInfo identified the need for a photo opportunity at L’Agulhas, the southernmost tip of Africa. So, it was with some delight that we received the announcement about a competition for the southermost tip last week, issued by the Western Cape's Ministry of Finance, Economic Development and Tourism.

It's an amateurish joke! The brief includes statements like "It is an ICONIC IDEAS competition – it does not have to be a concept for an actual structure. If it is a structure the dimensions can’t be too large. Local materials would be a plus. Can’t be too reflective as it is a significant maritime area, no reflection at night. It is the Southernmost Tip of Africa, Mother Africa needs to be reflected."

But two things despatched this initiative to the trash can.

Fedhasa – when credibility fails
It is a sad day when one has to question transparency and integrity at Fedhasa – South Africa’s oldest representative hospitality organisation. The whole issue of Rooms4U has been covered in previous blog posts but what was missing was any response from Fedhasa – which is at the centre of the whole controversy.

2010 World Cup bonanza overstated
Some interesting statistics from Gillian Saunders at Grant Thornton South Africa, which monitors on an ongoing basis the various impacts the World Cup will have on South Africa and its economy, show that the impact of the World Cup on South Africa may not be what many people are expecting. The real impact is the international marketing exposure if we do things right.

More on 2010
Want to know where the teams are playing for the group matches, or a list of all the fixtures, or details on all the stadia?

CapeInfo combines the Final Draw results into one graphic with all the fixtures. See where all the teams are playing one one easy glance. There's also much more on the stadia and we're introducing more advice for the fans about each host city.


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Add your business to CapeInfo's directory
Annual listing fees are from R150 a year and Nightsbridge clients only pay 10% commission for actual bookings. There is also an option for people who only want to advertise their house or apartment for the 2010 World Cup.


If you have content on CapeInfo...
If you have content in CapeInfo's Directory, please make sure it's up-to-date, does you justice and the following has been done:
  • Have you added an icon photo? This is the photo that appears in the search and category views. If you don't have one, viewers are less likely to visit your page.
  • Have you added photos to your Photo Gallery? That's what people are looking for so if you haven't, you won't be that successful.
  • Is your map location correct? If you haven't added it, you won't appear in the location maps when people look at the maps for businesses by location.
  • Have you selected your rate category, whether you offer World Cup accommodation and Fair Deals? If you haven't and people make their search selecting any of these options, your business will not appear.
  • If you are offering anything special for World Cup fans, write about it in your content.


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( 0 Votes )
 

Comments  

 
-1 # BB 2010-02-03 11:24
With regards to the "vulture/nurturer" bit. My wife and I sayed 3 nights in a wondefull place in Paternoster in November last year. Their rate was R1200 per night. The place was so amazing we decided we were going to go back in June this year, but this time for 10 days. When we went into the website to book online, HORROR!!! -- They have "adjusted" their rate to R3200 per night! In winter! Surely there should be some kind of regulation system with the tourism grading council?
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+2 # William1972 2010-02-03 12:29
I don't think the fact that the world cup is in winter bears any relevance to suggestions that room prices should be lower?!
It is fine for people to have lower prices in winter (when there is not a world cup) and then to increase them in the summer when there is more demand, it only seems natural to adjust them for the world cup (increase the prices) as there is increased demand.
No one coming to SA would expect the prices to be lower or even the same as peak season prices.

We as hotel owners have every right to charge what other countries charge for this once off event and I think people will realise when they arrive that if they were to return to SA again it would be a lot cheaper. They are not going to refuse to return because their hotel was expensive during the World Cup, they're not stupid, they realise it is an expensive time to visit.
If you can afford R30, 000 for 2 air tickets to watch a game of football then I am sure you can afford R1800 a night for a hotel room in the centre of Cape Town which is what I am charging (3 x the normal rate).
If I go to any other city in the world I pay this price and that is when there is no special event on like the world cup.
The media is giving the impression that it is the people’s god given right to be able to fly around the world and follow their team in a football match...it isn't! It is a privileged for people who can afford it. If you can’t afford it you watch it on TV.

Unfair pressure is being put on small hotels and B&B owners to cut their rates, to make it the same price as peak season (or even low season - where is the logic in that???). We as individual businesses will be the ones taking the loss - with the empty promise of helping the tourism industry.

I know that if I cut my rates it will not make any difference except that I will lose out while everyone else makes money. If SA really wants to do something positive they should take all the tax that is generated from the tourists paying these ‘high prices’ and invest it directly in crime prevention, housing for the poor, education and tourism. This will bring more people back to SA than cheap hotel rooms.
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0 # Pauline 2010-02-03 14:48
I cannot agree more with William(1972) If I have to pay twice the rate at the coast in December than I would in November, why would any one have a problem in paying x3 during a world event? Why are we arguing about this, its common sense!
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0 # Mary Ashford 2010-02-03 17:03
You will find that in the Swartland and West Coast region prices have generally remained the same i.e. normal winter prices this despite the fact that we have more sunny days, less wind and gives value for money. I know of some guest houses who decided last year that they would not raise their fees again until end 2011. You can get bed and breakfast for two people at R800 per room in a four star lodge. So people wake up and enjoy what is on your doorstep. Less than an hour away. You can enjoy bette weather conditions, more value for your money and safer!!
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0 # craig holt 2010-02-03 18:24
as a England fan living in SA it cost me a small fortune going to watch away and away after England play Egypt At Wembley the next games will be at home
I went on the internet and got a quote for accomadition in Rusternburg And PE and got Quoted 1500rand pp 2000 Rand pp b&b then i phoned the one in Rusternburg and said i wanted to stay in feb 300-400 PP are people crazy the last world cup in Germany we were payin 69-70 euros per night per couple
SA has now lost a lot of fans as it is pricing itself out on the holels and air fair
We went to the draw in CT and in Long Street we were paying 20 rand per pint insted of 14 rand
140000 went to the last game England Played in Germany the most ever to try and watch a football game
there are only 7000england applied for tickets all were sucsesfull but a few
the goverment must wake up put extra flights on even if thay subsdise them as people wiil come back to this brill countrey ACT NOW
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0 # Barry Livsey 2010-02-04 06:40
well its quite strange...who is making the mark-up.Our guest lodge rates have been marked up 60 -65% by MATCH ,FIFAS official Accommodation agents for the World Cup...so who's fleecing who.
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0 # Bridget 2010-02-04 09:37
Personally, I think B&B's should be charging the Normal High Season Rates, eg
Nov,Dec, = R 600 per person, per night B&B, that is not too much for the World Cup. I have a Guest House in Hermanus, have a number of bookings, using the term...long term relationship....Guests don't mind paying, as we all do, if you getting the excellent service and quality for the money. Most are complaining about the air Fares..too expensive!!!
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0 # Paulo 2010-02-04 11:36
William, Pauline,
You are gouging. Three times the normal rate? That's gouging. The message you send is that it's OK to milk the fans because they can afford R30k for air tickets. The airlines' antics aside, what YOU are doing is milking the situation. It's called greed, no less, and it gives the industry a bad name.
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0 # J L Nel 2010-02-05 15:15
Hi,

How can we get listed as "Fair Deal" for 2010 ?
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0 # Janey Mac 2010-03-11 09:01
The fans who come for the football are, in my experience, higher risk guests than average in terms of damage to property, disturbances to other guests and general mess. They should expect the additional risk to attract additional cost in accommodation. I don't beleive many of them will change their holiday patterns based on world cup prices. Many of them use their travel budget to follow their team. I would like to see a survey that compares accommodation and travel prices for the world cup in the last 4 venues to understand the extent to which South Africa is different. Supply and demand is and always has been a basic economic reality. If there is a moral debate it applies much more importantly to medicines and basic life essentials than to luxury items like holiday accomodation. I wish you would get off your holier than thou high horse and wake up to reality.
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