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World Cup accommodation tracking survey - 01/10


( 4 Votes )
 

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+2 # Sharon Prieler 2010-01-11 14:15
I feel that people who overcharge are chasing tourists away.
I have left my rates the same throughout the year @ R300.00 per person inclusive of breakfast, in Kirkwood.
I have already received bookings for the soccer and have not registered with match.
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+3 # David Statham 2010-01-12 07:01
I own a 16 bed guest house and am contracted to Match. Extracting conclusions from Surveys is very dangerous unless there is a clear implication so go easy. Prices charged have to be what the market will pay, as we have to survive through good and bad and can always only charge what the client will pay. I sell suites sometimes for as low as R400 and when I can, R1200. Nobody gives us credit when we sell cheap, but the truth is we must charge what we can get. Any other way is stupid as if we charge too low others will take all your rooms and sell them on and you lose.
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+4 # admin 2010-01-12 07:58
World Cup is not about one month in 2010 and the challenge of maximising revenue for a single month. Rather, it is an opportunity to showcase SA's hospitality giving reasons for fans to become SA fans.

It's about sustainability versus short-term gain; it's about great marketing versus greed; it's about good business practice versus bad business practice.

World Cup is a collective opportunity that goes with a collective responsibility. It's not just another blip on a revenue chart. It's about what happens next year and the years thereafter.

And as far as surveys go, "you can't manage what you can't measure."
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+1 # Brenda Craig 2010-01-12 10:29
I feel the same as David - we have quoted double in some instances and less in others, we are charging per room - not per person and if four people want to share they can however there is a limit as to how many in the room - no breakfast,those that book a double pay the room price which includes breakfast - this is working well we are 56% booked - and belong to no organisation purely from out website.
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+2 # Leonard 2010-02-01 04:44
I too agree with David, its a mater of supply and demand, the fact is there will be a great demand during that month and we know that quality accommodation in short supply. So long as we don't go overboard, remember the Europeans are used to paying there prices, our low prices during the rest of the year serve as an incentive for them to visit because during that time we are competing with other third word countries, i.e. the reverse is true "Low demand and high supply". Also don't forget to include a breakage deposit, especially if your rates are low, cos you might find yourself stuck with a few hooligans!
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+5 # Alison 2010-02-01 06:12
The confusion about what to charge left me feeling worried about ethics. I do not want to be so flexible in my rates that I end up offending people. I have decided, therefore, to adopt an approach of reasonableness and fairness. I will charge peak if I can, but I am aiming to provide excellent value for money as well. The rate should be fair to the guest and to the establishment
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+2 # A 2010-02-01 07:20
Alison, please get a life! Excellent value is good, but just know this, FOOD PRICES WILL BE WAY UP, non perishables may be rare and at a price, petrol will go up, electricity has already gone up.l If you keep your rates the same, you WILL LOSE!
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-1 # Sandy Hamilton 2010-02-01 06:33
Sad as it might be we have to face reality. Charging your usual rate is downright stupid. I opened my bookings September and charge R950 single and R1300 double. My rooms filled up with in 3 months I have taken 50% deposit on most & used this towards improvements & extra units. I have of course a back up plan should WC not happen. Now listening to others in my area who were overly greedy & those who refused to up their prices I know i made the right decision. Not too high not too low. I am 3 star & feel i have more than made my cut now from WC. Plus YES I agree with Leonard they will come back.
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+5 # Mienie Heymans 2010-02-01 06:39
This is an opportunity for ambush marketing. I think SA Tourism could do more to guide both parties and to set hard and fast rules. There is too much scope to hang ourselves and money lets people do funny tricks, that can cause much damages to the country and all parties.
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+1 # Mary Tebje 2010-02-01 07:16
I am astonished to read that Leonard thinks Europeans are happy to be pay high prices. We expect to pay high prices in London and Paris, but not Cape Town. We know when we are getting ripped off and when we are getting good value for money.
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-1 # 4* Self Catering 2010-02-01 07:26
The WC is your only opportunity to ever make a lot of money in a month. Gauteng where I am from will be the same as New York or London that month. A world hotspot!I hiked my rates by roughly 300% and based it on rates in New York or London during a big happening. I am full for the first 2.5 weeks and have started helping establishments around me, with the same quality rooms, with reservations. I have taken and confirmed reservations to the value of R 580 000. Don't be apprehensive of making money. It is an oppurtunity for you that won't come around again soon. If you have quality rooms and good service hike your prices! I have also used the money to add units to my establishment. All the funds is being invested in my guesthouse so that I can have more units afterwards and increase my revenue. Even though I have hiked my prices, I see that I am the second cheapest and some places a charging 3X my amount for tiny rooms. I don't know what they are thinking? Take hold of the World Cup and make it your own! And make money!
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0 # 4* Self Catering 2010-02-01 09:23
300% Mark up is a rip off my friend! You are taking the mickey! You can be sure that you will not see those feet in your guesthouse ever again! We have taken our peak season rates and increased it by 30% and have a minimum of 2 night stay. I also own a travel agency. I can promise you that most establishments we book with have increased rates with roughly 30% to 100%. You are over priced and you will see the affects after the world cup. Dont let your greed for 1 month ruin your many years of potential future income through bad word of mounth. I hope you have some good investments so that the money you will make for the one month will eran you enough to sustain you for all the years of referrals you will loose due to your bad reputation that you are bound to get. I can already see the hundreds of Trip Adviser reviews with the subject "Rip off accommodation - Dont go there". Good luck.
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+2 # Linda in Cape Town 2010-02-01 08:49
We see the World Cup as a great opportunity to have good occupancy in what is normally a low season period. The World Cup (and any other major event) is treated as a peak period, during which we'd charge the same rate as our normal 2010/2011 high season rate (not the 'existing peak period rate' as the survey suggests - that would be the rate appropriate to last high season, not the coming one).

The recent unbundling of rooms by Match is indicative of the lower than expected demand so far. Not surprising, given that we're in the midst of a major global recession. Not surprising, given the distance South Africa is from a major fan base in Europe. And perhaps most of all, not surprising because so many people have given up on the idea of coming when they realised the vampires were out for them on every level from plane tickets to hotel rooms.

Many in the hospitality industry will remember a similar feeding frenzy around the 2000 'Millenium'. Middle of the road restaurants were asking R2000 and up for New Year Dinner and people advertised 'Millenium Specials' at many multiples of their normal prices. We had our quietest season in years as a result (with said restaurants hastily reducing their rates in a scramble to fill tables, some even having to cancel their events). So in the end we all paid the price of the short-term greed.

They say Sydney's tourism dropped off a cliff after the Olympics because of the sour taste the Ozzies' rapacious prices left in the mouths, hearts and minds of tourists. These legacies live on. We need to be mindful of that.

Our economy (not just us) needs the World Cup to be a raging success. Let's help to make that happen. Not destroy the opportunity in the interests of a fast buck. We stand to gain far more if we take a long-term view - no business can build itself sustainably on the back of one event. You may be using the money to build more rooms, but who's going to fill them in the future?
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+2 # Liziwe Ngcokoto 2010-02-01 09:02
We are a guest house in Guguletu township in Cape Town.
Our rates have increased and we are charging R900.00 per room per night (double) breakfast included.We have recieved enquiries but no bookings.We are close to airport and are a typical 3 star establishment.
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0 # Etienne van Leeuwen 2010-02-02 14:39
Hi, I own a charming, old (1796) guesthouse, in Swellendam (Overberg). Would dearly like to participate in your next survey.
Kind regards.
Etienne
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