Despite a dreadful tourism performance in the past year, largely due to the Department of Home Affairs Visa Regulations introduced more than a year ago (but recently reversed), Cape Continue reading →
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2010 World Cup: cash in or lose out?
2010 World Cup soccer fans coming to South Africa next year will be the target of overpricing of car rental, hotel accommodation and air transport, according to a number of travel industry players interviewed by Travel News Weekly.
Tour operators and travel agents complain about the “2010 rip-off”, and many have been quoted double the normal accommodation rate by hotels. Showing their greedy side, the hotels are also cutting the commission percentage they are offering agents, given that they expect to be fully booked. “It is great for those making the money, but in the long run, it is going to reflect badly on South Africa.” said an agent. Others have decided to not be part of the ‘rip-off brigade’, and Dorienne Levitt of African Stay said as follows: “I have decided to not be part of that and am only dealing with providers who offer reasonable prices. I will try my hardest not to use vendors who are acting without integrity, during 2010 and thereafter”. In addition the conditions set by hotels with minimum stays of 8 – 30 days are too stringent, agents say. Protea Hotels has contracted 80 % of its rooms to MATCH, at prices ranging between R 950 – R 4 500 per room.
The Travel News Weekly article also quotes Brett Dungan, the national CEO of FEDHASA, as saying that his organisation would not “associate with nor support hotels that were not affiliated to MATCH and were “ripping off” clients. The reason why we have been working so closely with MATCH is to eradicate the issue of price gouging”. But it is MATCH that is ripping soccer fans off, by adding 30 % commission on all its contracted accommodation rates!
Transport costs too have soared, with car rental prices doubling from the already high 2009 Confederations Cup rates levels. Avis says it will increase its rates by 15 – 20 %, justifying this on the basis of “the expected demand and additional work required”!
Airfares for 2010 too are a rip-off, for both incoming and outgoing flights, and for domestic travel, that is if any tickets can be found to be available. Most airlines have not released their seats for the World Cup period. Domestic flight tickets are likely to cost double the normal fare, reports the Weekend Argus, at about R 3 800 for a return airfare between Johannesburg and Cape Town on SAA, and at R 5 300 on BA/Comair. International flight prices are set to triple, the airlines milking a money-making opportunity after many years of tough trading.
Coach companies too have imposed “crippling conditions”, agents say.
Chris von Ulmenstein, Whale Cottage Portfolio www.whalecottage,com
