Backlash warning as Perth rates soar

Backlash warning as Perth rates soar
By admin

Mantra has warned that rocketing room rates in Perth and other regions of WA could see tourists priced out of the market.

Soaring occupancies on the back of the state’s mining boom continue to drive up prices in the Western Australian capital, sometimes above $1000 per night.

Regional sales and marketing manager WA Scott Alderson admitted that, although there was some degree of “science” to room pricing, there was a tendency to “see how far you can push it”.

But he warned things could change, referring to a “mining burp” in 2008 that had seen room rates “fall flat”.

“If we push the rates too hard, when things drop off we have to take a massive step backwards,” he told Travel Today. “We don’t want to scare people away.”

Meanwhile, hotels are devising new ways of offering value to guests as service expectations rise in line with rates.

“If you spent $700 for a four star room, you’d definitely like a bit more for your money,” Alderson said.

He confirmed the hotel group was considering how to improve its value proposition but highlighted difficulties with adding extras just in Mantra’s Perth properties.

“It’s hard to judge and we haven’t come to a final decision,” he said. “We’re waiting to see which way the market trends first.”

Service levels rather than additional facilities would likely be the focus of the increased value, he added.

“We can try and give the best welcome possible and deliver better than expected.”

Meanwhile, Alderson suggested travellers adapt booking patterns in order to benefit from lower rates. He advised booking well in advance, avoiding Tuesday and Wednesday stays and using travel agents who have better access to deals.

“Rates over $1000 are for people who are literally looking last minute,” he warned.

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