OVERPRICING ILLUSION

by on in General News

While there are undoubtedly people out there taking a chance and charging exorbitant prices for accommodation during the world cup, the reality is that, for the most part, rates being charged are very reasonable and market-related. In fact, the results of an independent survey conducted by capeinfo.com and endorsed by Cape Town Tourism, show that reports on overpricing by accommodation establishments are largely based on perception rather than reality. It must also be remembered that the property rentals which recently made headlines are the exception – the astronomical prices of luxury private ocean side villas are not a true representation of the cost of staying in Cape Town during the 2010 FIFA World Cup™.

Cape Town Tourism spokesperson Lianne Burton recently attended the World Travel Market in London and found, most surprisingly, that overpricing was a bigger issue for UK travelers than perceptions of safety and security in South Africa. Locals would do well to remember this considering that cities such as Sydney and Athens experienced a decline in visitor numbers after their Olympic events, due to perceptions of ‘greed’.

To this end, Cape Town Tourism has also drafted a Tourism Code of Responsible Pricing for Cape Town, which calls for a moderate approach to pricing and a mindfulness of tourism sustainability and transparency. It would appear that property owners and agents have been mindful of this as the most recent survey by capeinfo.com in February showed that 57.37% of establishments are charging standard peak season rates and that 75.32% of establishments are currently charging no more than 20% above their peak season rates. Cape Town Tourism will also soon launch a dedicated section on their website (http://www.capetown.travel) where members who adopt responsible pricing strategies in line with the Code, can advertise their accommodation directly to prospective World Cup visitors.

Unfortunately, there has recently been considerable negative publicity regarding overpricing ahead of the world cup and it’s essential that we make every effort to preserve out reputation as a value-for-money-destination. With under a hundred days to go until kick-off, we need to encourage the media to let it be known that there is a wide range of reasonably priced accommodation available to suit all budgets.

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