World Cup price alarm

Hamilton hotel and motel owners could seriously damage the city's reputation as a tourist destination if they ramp up prices during next year's Rugby World Cup.

The warning from Hospitality Association of New Zealand Waikato branch president Josh White comes as Australian tourist operators claim hotels such as Hamilton's Ibis Hotel are planning to charge $700 a night – up from its normal $60 to $100 rate.

"They would have to have rocks in their head to price themselves off the market. It is a free market so they can do what they like, but they need to think about the long-term damage to the city's reputation," Mr White said.

Accor Hospitality, which operates both Ibis and Novotel hotels in Hamilton, today said that public pricing had not been set.

Marketing director Lucy Acott said prices quoted were established a year ago.

"There is an amount of inventory made available to RWC Ltd and that was made available a year ago. There is a difference between those prices and the prices we set which are made available to the public one year out from the event," Ms Acott said.

"We are aware that it would not be in our best interest to price ourselves out of the market," she said.

Former Tourism Waikato chief executive John Rasmussen warned that the Australians could be blowing the situation out of proportion.

"I think it's a bit of a beat-up by the travel agents in Australia trying to force the prices down," Mr Rasmussen said.

"The prices will find their own level according to supply and demand over the next couple of months."

While Mr White said there was nothing wrong with charging premium rates during peak times such as Fieldays, the V8 supercar race weekend and World Rally Championship round, he suggested there were better ways to take advantage of big business.

"During those events it's normal for hotels and motels to offer block bookings. For instance there may be a `minimum number of nights stay' imposed which is fine," he said.

Mr White said locals trying to make a few dollars by renting their houses were often the ones leaving visitors with a bad impression.

"There is often a glut of houses to rent during peak times and they can be charging thousands of dollars for their homes, but the tourists get on to it pretty quickly and mostly prefer to stay well outside the main area and travel rather than pay those high prices."

Waikato Motel Association president Trish Wood said the reported price hikes by Hamilton hotels were "a touch obscene".

"We haven't decided on RWC pricing yet but I don't think we'll be putting our prices up by seven times though," Ms Wood said.

Mr White said it was important for all tourist operators to think long-term.

"After the Lions tour a few years ago we had a big surge of people who stayed. Tourism figures were up at that time and there were no price hikes that I know of and those people stayed on after the event. That is where the money can be made," he said.

Almost 70,000 overseas fans are expected to travel to New Zealand for the Rugby World Cup.

RWC chief executive Martin Snedden said $55 million of accommodation had been sold in the past two weeks through its Official Accommodation Bank.

Any hotels that were overcharging would soon bring their prices down if faced with empty beds, he said. "The free market will soon sort it out."

- © Fairfax NZ News