Wednesday, November 24, 2010

The market does actually work

We have been remiss in blogging lately as we have been somewhat sidetracked with our day-job...

We did find time to read an article in yesterday's New Zealand Herald about accommodation tariff hikes in Auckland during this week's U2 concerts.

The article follows the tried and true MO of gathering the worst examples of price differentials to try and create hysteria from alleged "rampant and unfair profiteering."

Hotels mentioned were the Hotel Grand Chancellor offering a two-bedroom apartment for $999 over the concert period - up from the usual rate of $309. Auckland's Crowne Plaza with an unspecified room type for $359 - up from the usual rate of $171 and the Duxton Hotel with a spa room for $269 - up from the usual rate of $189.

If you can be bothered you can read the article HERE, however the best response to this contrived phone-around puff-piece of journalism was from Hospitality Association chief executive Bruce Robertson that was quoted:
"Price rises at busy times were "entirely normal" and if rooms were over-priced, hotels would have empty rooms because people wouldn't pay.
The market does actually work" 
Couldn't of said it better ourselves - Nice one Brucie!

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