HOTELIERS in Vietnam are proposing a 50 per cent plus rate increase for rooms next season, and foreign-run tour operators are uniting to protest. In a joint statement, the operators said key properties had failed to honour existing contracts, and rates were being increased to levels described as “a grab for cash.”
Australia-based Travel Indochina product manager, Mr Eric Finley, said: “We have been marketing Vietnam for more than 13 years and have never seen anything like this. When negotiating rates for 2008, we had some hoteliers insisting on immediate rate increases, and increases of 50 per cent on existing bookings. Other companies report hoteliers have insisted on reducing allotments dramatically, some cutting allotments in high season altogether.” The operators said if hoteliers went through with this strategy, it would cost Vietnam’s entire tourism industry across the board, and recovery time from such trauma in other markets had “taken years.”
Phoenix Voyages Groups president, Mr Edouard George, said: “The behaviour of some leading hotels is seriously jeopardising the future of inbound agencies, both in terms of employment and profitability…The hotels should realise inbound agencies are working and preparing travel plans a year in advance.” He said inbound operators were forced to quote “blindly” as a result, and had to turn down several groups “not because the hotels are full, but because they refused to sell their rooms to inbound agencies.”
Focus Asia’s sales and marketing director, Mr Patrick Gaveau, said: “Vietnam has been successful at attracting tourists; it is a safe, exotic and price competitive destination. Now,we wonder if hotels’ outrageous price hikes and the declining appeal of the damaged environment combined with the poor maintenance of landmarks and sites may damage Vietnam’s credibility in the long run.”
Destination Asia’s managing director, Mr Paul Levrier, said: “Within the space of this first quarter of the year, we are already seeing our long term clients search for alternative destinations in the region after being frustrated with the hotels’ approach to business and the lack of ethics applied.“