Avoid hotels for best World Cup prices, suggests survey
Tuesday 30 March 2010
Over a third of South African hotels are charging rates at a 50 percent premium during the FIFA World Cup, according to research conducted by auditor Grant Thornton.
The research, commissioned by the South African Office of Tourism, suggests that the province of Gauteng, home of the Johannesburg (host of the final match) and Tshwane/Pretoria Stadiums, is the most overpriced. Sixty-five percent of establishments in the area were charging prices over 50 percent higher than the "rack rate" (standard price per night).
Also, 53 percent of accommodation providers in Durban, which will host one of the semi-finals, are charging rates over 50 percent higher than their standard rates. In Cape Town, which has been widely criticized for overpriced accommodation, 20 percent of establishments were charging rates at a 50 percent premium or higher.
Across all areas and accommodation sectors, about a quarter of accommodation providers are charging price premiums of more than 50 percent above the high season rate for 2010.
For travelers, it seems that the best way to avoid being ripped off is to avoid hotels, guesthouses and B&Bs altogether. The research suggests that further down the accommodation scale, establishments have not raised prices on such a wide scale - the number of establishments with prices at a 50 percent premium falls to 21 percent for hostels, 20 percent for lodges (establishments located on a farm or hunting area), 14 percent for self-catering establishments and 11 percent for caravan/camping parks.
Similarly, only 12 percent of top-end five star providers were found to be charging a 50 percent premium - compared to 41 percent of one- and two-star establishments.
South Africa has been quick to point out that prices naturally rise during events that generate visitors and widespread global interest. For the Athens Olympic Games in 2004, the average room rate rocketed by 260 percent in the city, damaging visitor numbers.
"The survey has found that the addition of price premiums to normal high season rates for accommodation during major events is a global norm," said Marthinus van Schalkwyk, South Africa's Minister for Tourism. "During such events, normal economic principles of supply and demand result in premium pricing."
The Independent travel offers: Discover a world of inspiring destinations
Top 10 cheapest cities to visit, according to TripAdvisor
The 50 Best spas
Hashima: Among the ruins on Japan's Battleship Island, the place that time forgot
A commuter is getting revenge on First Capital Connect by Photoshopping its CEO's face every time his train is delayed
The 50 Best weekend retreats
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
- 4 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
£45-£55k OTE £75k : Charter Selection: Major London International Fashion and ...
Voluntary, reasonable expenses reimbursed: Reach Volunteering: Are you keen on...
£33000 - £45000 per annum + 8% Bonus, pension: Deerfoot IT Resources Limited: ...
£30K- £40K pa + Commision £10K + Benefits: Charter Selection: Rapidly expandin...