Southern beaches sizzle on hotels’ price war
Hotels in the south are in the throes of a price war in the wake of a drop in summer arrivals this year.
“We are all the time looking at pricing to suit market conditions,” Aitken Spence Head of Hotels Malin Hapugoda said adding that “the price war is on the beach and to a lesser extent on the round-trips.”
He noted that some of their competitors were “really cutting” prices and this was expected to continue as most arrivals were moving into smaller guest houses and smaller hotels.
Among strategies adopted by southern resorts were offering attractive packages with discounts and other reductions. “Apart from the Ayurveda resort, others are facing a huge price war,” Mr. Hapugoda explained adding that price determines the market and in spite of providing quality and service, today the market was dependent on price alone.
Some competitors were providing half board double even at US$75 (compared to the average $100) during these months. Prices in the South have been slashed by around 50-30 per cent, in some cases.
Bookings were said to continue to take place on the short term and it was unpredictable as most would be made at the last minute, he said.
Other hoteliers say that while April was good in terms of bookings, May and June were not upto expectations and hoped to get a better season in July and August during the Kandy Perehera period
Tourist Hoteliers Association President J. Kehelpannala however dismissed reports of a ‘price war’ saying prices are based on the product offer.
He said each hotel has its own pricing and referred to the current situation as an occupancy drop during this period that has caused prices to be determined by the demand and supply for the products on offer.
However, recent credit card offers have also cashed in on the price war with reductions in the range of 20 – 40 per cent and also free stays for the cardholder.
Follow @timesonlinelk
comments powered by Disqus