Did you know that the term ‘price gouging’ actually warrants a Wikipedia entry? No really, you’ll find it here.  And it seems that some people actually support the concept.

“The term is similar to profiteering but can be distinguished by being short-term and localized, and by a restriction to essentials such as food, clothing, shelter, medicine and equipment needed to preserve life, limb and property. In jurisdictions where there is no such crime, the term may still be used to pressure firms to refrain from such behavior.

“Some support the ability to raise prices under such circumstances, asserting that government prohibition of the practice is a violation of individual rights or that the ability to raise prices has beneficial effects or both. While some economists who defend the practice use the term ‘price gouging’, others disparage it as merely pejorative.’

Wikipedia is silent, however, on the effects of short term price increases on countries and destinations in the tourism industry.

South Africa is in the grip of World Cup fever, and I fear that the ilness has made many of us delirious - so much so that we can’t see what we’re doing to ourselves.

I’ve been talking about this for some time now, but  correspondence arrived in my in-box last week that was more than just theoretical - it was real. So, rather than arguing against unrealistic price increases, I thought I might let the mails talk for themselves (and please note - this is not an attack on the inbound operator. These are the actual quotes he received. Read them - and the client’s response - and make up your own mind).

MAIL FROM A READER TO THIS TOURISM WEEK:

Hi Martin

I have a client who has tickets to watch the Australia games at the world cup. He asked us to arrange accommodation and some game viewing at lodges after the tournament.

Here is my request to a major inbound tour operator with a specialist team working only on World Cup enquiries - and the response I received:

We require 2 rooms in the following cities on the following dates: Johannesburg: 15 June – 1 night; Bloemfontein: 16 & 17 June – 2 nights; Sun City/Rustenburg 18, 19, 20 & 21 – 4 nights; Polokwane 22 June – 1 night; Nelspruit 23, 24 & 25 June – 3 nights

We also need to try and fit in some game lodges…

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THE RESPONSE FROM THE OPERATOR

Thank you for your request. I would just like to advise that 90% of hotels, game lodges and guest houses have a minimum night stay requirement for the World Cup period.

The minimums are 3 nights, 4 nights and 7 nights at most places. I am busy looking at availability for you and will send you a email with properties that are available with what there minimum night is. With the ones that have 7 nights we can negotiate with the properties but only once clients confirm.

Please see our quote below:

Johannesburg: 15 June – 1 night
Holiday Inn Sandton (Standard rooms) @ R4,400.00 per room per night, bed and breakfast basis. 3 night minimum required.

Bloemfontein: 16 & 17 June – 2 nights
Orchards Guest house (Standard rooms) @ R 2,750.00 per room per night, bed and breakfast. 3 night minimum required.

Sun City/Rustenburg: 18, 19, 20 & 21 – 4 nights
Koster country house (standard rooms) @ R 4,840.00 per room per night, dinner bed and breakfast. 2 night minimum required.

Polokwane : 22 June – 1 night
Mashovhela Lodge (standard rooms) @ R 2,576.00 per room per night, dinner bed and breakfast. 2 night minimum required.

Nelspruit: 23, 24 & 25 June – 3 nights
Ant and Elephant lodge (standard rooms) @ R 1,380.00 per room per night bed and breakfast basis. No minimum nights required

I have not booked anything yet, and the above accommodation is subject to availability at the time of booking. Please note that should we be able to get rooms for you, we will provisionally hold the accommodation for 48 hours. Once you have paid in full for the accommodation, we will confirm the accommodation to you and send you the voucher.

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MAIL FROM THE READER:

To the Inbound Tour Operator

Thanks you for this. I have passed it on to my clients but doubt very much that they will accept being ripped off as this does. Not only are the prices simply stupid but the minimum night stays just add to what is already a farcical price – even before we add any mark up for our efforts. South Africa will live to regret this greed and avarice and will pay in the future as travellers are being ripped off big time and the word will spread rapidly and they will not return nor will they recommend South Africa for future holidays to their friends. South Africa should use this opportunity as a springboard to future tourism and not as an opportunity for short term gain!

This happened to Sydney with the 2000 Olympics and they are still paying the price as tourism was badly affected after the Olympics and the effects are still apparent!

Anyway this is none of your doing so I guess all I can do is express my views in the vain hope that someone might become aware of this sentiment.

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AND HERE’S WHAT THE CLIENT THOUGHT ABOUT ALL OF THIS:

Hi John,

Love the e-mail.

It’s true they are blatantly gouging all visitors and it is leaving a sour taste in our mouths.

I think our best option is to wait until closer to the date as I believe there are not too many suckers out there who will pay these rates.

Let talk again in a couple of months.

Regards

Chris

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And really, after that - there’s not much more to say, is there?

New Management for George’s Oakhurst Hotel

Well-known Mossel Bay hotelier JJ Moorcroft (the creator of the award-winning Protea Hotel Mossel Bay) has taken over management of George’s Oakhurst Hotel. He will be assisted by Erica Valentyn, who served for more than 12 years with the Garden Route’s private sector marketing organisation, Gartour.

The 25-room, 3-star Oakhurst Hotel, which has been built in the thatched tradition of a fine Cape manor house, is situated in a quiet side street at the centre of George, the Southern Cape’s capital city.

“We market the hotel under the slogan ‘Urban Tranquility in the Heart of George,’ because there really is no better way of describing it,” said Mr. Moorcroft.

The hotel has positioned itself - both physically and in its marketing campaigns - to attract tour groups, holidaymakers and businesspeople.

“There are no less than ten restaurants within walking distance of our front door, we’re child-friendly, we’ve tied up an agreement with a spa right next door to us, and, of course, George is right in the heart of all the attractions that make the Garden Route great - the golf, the mountains, and the sea - so Oakhurst falls naturally into the touring and holiday markets,” said Mr. Moorcroft.

“But the Conference Market is also an interesting one for us. We’re linked with The Office, a conference facility about two blocks away - so our guests are conveniently close to their meeting rooms, and their guests can either stay with us or eat their meals with us.”

The hotel offers three types of en suite bedroom. One ground floor room has been designed for the disabled; 12 Standard Rooms have twin or double beds; and 13 Deluxe Rooms are situated on the upper floor of the two-storey structure, and have lounges or bunk beds in their loft areas - which tuck in under the thatch of the roof.

Many of the rooms face the Outeniqua Mountains - which tower over George - and all are air-conditioned and supplied with stylish modern amenities. And whilst George is correctly classified as a city, the fynbos-covered mountains give the town a feeling of being in the country - a feeling that has informed the atmosphere and furnishings of both the bedrooms and the public areas at Oakhurst.

“Oakhurst has an outdoor swimming pool and patio, a lounge with a large farmhouse fireplace, a ladies bar, secure open parking, and wireless internet, and our restaurant is open for breakfasts, lunch and snacks throughout the day - so it’s become a popular meeting place for local businesspeople, too,” said Mr. Moorcroft

Ms. Valentyn, who came to George from Johannesburg in 1997, and particularly enjoys coordinating weddings and conferences, said that she relishes the idea of putting new properties on the map.

“I am so excited by Oakhurst because the hotel is of a very high standard, and I know that every guest will be more than satisfied,” she said.

Visit the Oakhurst Hotel on line at www.oakhursthotel.co.za - and watch an interview with JJ Moorcroft below

Now go away on holiday - it’s in the economy’s best interests