Beck Vass, writing in today’s Herald, has highlighted the astronomical prices some New Zealand hotels are quoting for rooms during next year’s rugby world cup.
The paper cited a quote of $2,400 per night which the Novotel in Christchurch gave to a tour operator, who was too embarrassed to tell his clients that hotels were charging so much.
She interviewed Peter Bills, who was said to be outraged by the price hike. He said:
“It almost takes your breath away, the arrogance of it. It’s just downright robbery.
“New Zealand’s crazy to do it. I think it’s going to get a shocking reputation around the world.
“The most disappointing thing is it’s going to give the country an awful name.” read the full report here
A response was given by Novotel Christchurch’s general manager Roberts Ejubs, who said prices always varied:
“Hotel rooms are just like every other commodity,” he said.
“The price is determined by supply and demand. Clearly people expect to pay more at times of high demand.
“Another example of a product doing this are tickets for the Rugby World Cup event itself.
“As an example, some pool game tickets are as low as $30, yet finals and quarter finals are more than $1300.”
All well and good so long as he remembers that people can also sit at home, or in a bar, and watch the games.
Rugby matches are transient events, over in a matter of hours. Reputations, on the other hand, take years to build.
The article ended with the following information:
* $2400 a night at Novotel Hotel, Christchurch
* $170 usual rate
* $634-$736 a night at Heritage Hotel, Auckland
* $290 usual October rate
* $603-$705 at CityLife, Auckland
* $270 usual in October
Update 23 November 2010 – U2 Concert Rip – Off
The NZ Herald published another rip-off New Zealand report today when it revealed that hoteliers in Auckland were charging three times their normal rates for rooms during this week’s U2 concerts:
“Auckland’s Hotel Grand Chancellor is advertising a two-bedroom apartment for this Thursday night when the first of two concerts will occur for $999 – up from the usual rate of $309.
A staff member said yesterday that the $999 was being charged because room rates always increased when large events were on. The same had happened for the Metallica concert last month…” read the full report HERE.
Supply and demand is one of the biggest reasons for why New Zealand is so expensive… as well as price gouging.