On a travel website, Superior Dunedin Apartments is listing a "standard twin private" room for $1400 on Tuesday, February 4, 2020.
That is the night Elton John is playing in Dunedin.
On another night in January, 2020 it is charging $165 for the same room type.On the accommodation’s own website for that night it is charging $999 for "studio apartments" and $1050 for a "superior apartment".
Three other nights the Otago Daily Times randomly surveyed were $129 and $139 respectively for the same rooms.
The prices are similarly inflated on September 21, 2019, which is the night Fleetwood Mac is playing in Dunedin.
If booking on the accommodation’s website for either concert, customers are made to stay a minimum of three nights, which is not necessary on any other dates.
For both concert nights most accommodation websites are showing no available rooms in Dunedin proper.
For the Elton John night, travel website Trivago shows three other available locations, all of which are at least 19km away from the city and priced between $151 and $253.
Dunedin City Council community services general manager Simon Pickford said the council was aware of the property.
It was "definitely" operating without a resource consent which it needed to operate short-term visitor accommodation.
It was notified about the property’s operations by a third party.
Staff had contacted the owners in recent months, but a resource consent had not been lodged.
It was also likely to need a building consent.
Staff would follow it up in the future if no consents were lodged.
The accommodation offers five separate rooms with varying amenities.
When contacted about the price increases and lack of resource consents, owner Sergiy Gumenjuk responded via text saying he was overseas and would not be able to respond until the end of the month.
Otago Motel Association president Alex Greenan said some businesses raised prices in high-demand times.
However, the case of Superior Dunedin Apartments was an "extreme" example of "price gouging", he said.
Consumer head of research Jessica Wilson said accommodation providers could raise fees to take advantage of demand, but they needed to be upfront about the charges.
"There’s nothing to stop them doing that, but they need to present the information clearly for consumers. They can’t misrepresent or make any unsubstantiated claims.
"If you’re paying that amount you’re probably going to expect something pretty flash."
Accommodation providers raising prices in high-demand periods is becoming more common with "Airbnb-type accommodation". We have seen an increase in it in recent years."
