Minimum room rates: another ‘organic’ push?

July, 2023

  • Dispassionately justify why a Tourist should pay significantly more vs. current pricing and competition – especially for discretionary leisure travel?
  • The dynamics of demand and supply (the invisible hand) will, in most cases, take care of pricing.  Is there really a need for ‘Big Brother’ intervention?
  • Is there an evidence-based case, with risk / price sensitivity analysis, to justify the increase (without a drop in footfall)?
  • If yes (to above), why the reluctance to increase room rates? After all, it will mean additional revenue! If no, who will underwrite the potential losses?