Hoteliers defend RWC tarriffs

Hoteliers accused of hiking prices too high during next year's Rugby World Cup say they have sold more than $55 million worth of accommodation and are matching prices to the market.

The hotel sector was aware that visitors would go elsewhere if prices were too high, hotel council chairwoman Jennie Langley said.

Australian tour operators have complained about high prices charged by hotels during the event. Some have said that fans from across the Tasman would prefer fly to New Zealand, watch the games and fly out again rather than pay the rates being asked by hoteliers.

"This is an international event that is attracting interest from around the world. In the last couple of months there's been over $55 million worth of hotel accommodation sold, so prices seem to be meeting expectations," Ms Langley said.

Most hotel members had committed a large part of their accommodation to an official accommodation bank two years ago, she said.

The Official Accommodation Bank was responsible for ensuring there was enough accommodation at the price and quality requested by teams, official guests, media and others. Prices were confidential.

Some of the rooms in the accommodation bank would be released and prices adjusted now that it was known where teams would be staying to train and play, she said.

More than 300 hotels had supported the accommodation bank, Rugby World Cup chief executive Martin Snedden said.

"The sales volume to date suggests that, in general, most prices being charged by hotels for what is a peak period are reasonable," he said.

"We are confident that the free market will provide solutions so that hotels that are overcharging will have to reduce their prices or face the prospect of empty beds during RWC
2011."

The hotels agreed that the minimum night stay applying to all accommodation bank rooms would be two nights for all but the last weekend, when it increases to three nights. That compared well to other international tournaments such as Rugby World Cup 2003 in Australia where hotels in Sydney
imposed nine-night minimum stays during the knockout phase, he said.

Warren Livingstone, managing director of the Australian We Love Rugby tour company, has complained that some hotels have hiked their rates by 400 percent, and some up to 1000 percent during the world cup.

Fans would stay away if they were being forced to pay such prices. "Australians love New Zealand and we love coming there for the rugby, as we do every year by the thousands for the Bledisloe Cup. But it won't be at any cost," Mr Livingstone said.

"We have over 4000 fans pre-registered for 2011 but Australians won't just pay ridiculous prices, we'll look at other rugby events to travel to like the end of season spring tour to Europe."

British tour operator Gullivers Sports Travel UK was considering flying fans to Auckland games and
then back to Sydney to stay the night, rather than travelling to a more expensive hotel room in Hamilton.

Another option being considered was to charter a cruise ship.