Motel price increases for events

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Stu1

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#303129 18-Jan-2023 14:30

We have traveled domestically more since Covid and supported local tourism. There is a concert in Taupo over Waitangi weekend, the normal price for one nights accommodation for 2 kids and adults is $279 a night which isn’t bad for Taupo. I expect prices to increase a bit for when there is an event on. The motel in question is charging $1615 per night for the same room that is $279. They have dropped it now to $1450 as a special. How can you justify a 400% price increase? . I find this really disappointing as a lot of people have supported NZ tourism in difficult times.

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#3023276 18-Jan-2023 14:40

supply vs demand, they might only have 1 room left, vs the other time you checked they might have had lots.

if people have to travel for events they will pay for a room

Stu1

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#3023279 18-Jan-2023 14:45

Just seems really high compared to other events , never paid that much even in Auckland CBD. Even if they increased 200% they are making a good profit

johno1234

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#3023297 18-Jan-2023 15:24

You could stay in Tokoroa and catch a helicopter ride in for the same price.

Jase2985

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#3023298 18-Jan-2023 15:32

there's a few choices, find somewhere else to stay in taupo, which also likely has high prices, too, pay the price at the place you looked at, stay in a town close, or dont go

quickymart

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#3023299 18-Jan-2023 15:33

Stay in Turangi and drive up for the concert?

wellygary

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#3023311 18-Jan-2023 15:58

Stu1: How can you justify a 400% price increase?

Taupo looks full on the Sat night of Waitangi Weekend.

A check on booking.com gives

"99% of places to stay are unavailable for your dates on our site.".. with only 2 rooms available, 1 with a communal bathroom @$900 while the other is $1300

ahh. now I see why... this is probably the biggest concert to hit Taupo since ever...

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Stu1

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#3023318 18-Jan-2023 16:19

There were some opportunities to stay in the golden mile in rotovegas . Just having a rant on how greedy moteliers are . I definitely wouldn’t go back to the particular motel just in principle

Linux

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#3023347 18-Jan-2023 19:14

Bet if you offered accommodation in Taupo you would bump up prices when demand was high

I sure would

Stu1

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#3023353 18-Jan-2023 19:36

Linux: Bet if you offered accommodation in Taupo you would bump up prices when demand was high

I sure would

I would but not 400% , the point is NZ tourism campaigned to travel domestically to help NZ moteliers through Covid, but as soon as the bad times are over NZ motel industry seem to have forgotten who kept them afloat and go back to ripping off domestic tourism

Jase2985

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#3023366 18-Jan-2023 20:10

i guess you wont be staying at any motel/hotel then as they all do it.

they are not ripping off domestic tourism they are extremely busy cause its a holiday weekend and there are events on.

Stu1

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#3023367 18-Jan-2023 20:25

Jase2985:
i guess you wont be staying at any motel/hotel then as they all do it.

they are not ripping off domestic tourism they are extremely busy cause its a holiday weekend and there are events on.

Sorry 400% increase is taking the Mickey and a rip off. the same logic could be applied to supermarkets. Countdown doesn’t increase cheese by 400% at Christmas because it’s Christmas time. Just rechecked they have 34 rooms left so definitely just greed. They could of increased by 100% and had full occupancy by now

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Jase2985

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#3023416 18-Jan-2023 20:39

Stu1:
Jase2985:

i guess you wont be staying at any motel/hotel then as they all do it.

they are not ripping off domestic tourism they are extremely busy cause its a holiday weekend and there are events on.

Sorry 400% increase is taking the Mickey and a rip off. the same logic could be applied to supermarkets. Countdown doesn’t increase cheese by 400% at Christmas because it’s Christmas time.

nope not the same

they are not fluid enough of a business to do that, and they sell 500+ different line items and hundreds per item. a hotel sells 3-4 line items have 5-10 per item and can fluidly alter their price easily.

airlines do it all the time

nztim

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#3023419 18-Jan-2023 20:47

You realise that in the off peak season where
occupancy is at say %20 these places run at huge losses

That is why the %400 at peak times comes into play, they need offset those losses

No different to airfares

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#3023420 18-Jan-2023 20:58

I remember spending summers in Taupo in like early Jan where there was no one around.

The racing used to mop up a few beds in the town itself buy Waikrekei was still good value.

I managed to afford Manuels in winter once, we got a lakeside room upgrade; the odds of that ever happening again are slim to none and now every time I think about going back, those rooms are a good $200 more than what I paid for ours back in 2018 or so.

Their pricing model seems to be really inelastic, it's just unaffordable all the time, no matter when or what day of the week it is.

Stu1

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#3023421 18-Jan-2023 20:59

nztim: You realise that in the off peak season where
occupancy is at say %20 these places run at huge losses

That is why the %400 at peak times comes into play, they need offset those losses

No different to airfares

They do quite well in Taupo off peak as well with the ski season. That may change this year with the closure of the mountain. Airfares are not 400% higher due to concerts e.g Ed Sheeran in Auckland . They also sell seats at tiered prices. This particular motel has 90% of its units still available on the particular date due to its prices, where as other motels have set a more realistic price point and are now booked out.

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