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13502
Wed, 07/23/2008 - 11:52
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Beijing hotels slash rates by 20 percent ahead of Olympics

Beijing, Jul 23 (PTI) After jacking up room rents ahead of Olympics next month, hotels here, have slashed the rates up to 20 percent in their last ditch bid to woo tourists whoappear to be shying away from the Chinese capital.

Amid flickering hopes of a much talked about boom in customers ahead of the Olympic Games next month, the move is an attempt to undercut the competitors at the last moment tocompensate the less than expected occupancy till now.

China is expecting up to only 4,50,000 overseas tourists in August, including the 1,20,000 for the sporting event incomparison to the 4,20,000 who visited china last August.

Olympic room prices in the average three-star hotel, compared with those quoted in May and June, are now reduced from U.S.D. 104 to U.S.D. 58.6 per night and in a four-star hotel from U.S.D. 220 to U.S.D. 117 per night, China’s largestonline travel service website Crip.com said on its website.

"The reasons could be multiple and the price cut during the Olympics is now a trend," Wu Jiaoli, a press officer with N.A.S.D.A.Q.-listed website was quoted as saying by thestate-run China Daily.

"One reason is that the occupancy rate is less than expected; another is to undercut the competitors at the lastmoment," he said.

The three-star Beijing Fuhao Hotel has reduced the room rates by 20 percent during the Olympics when compared with those quoted in June, despite the Olympic occupancy rate being70 percent.

"We want to attract more guests during the Olympics at a time when people are about to finalise their travel agenda," Tian Ye, Sales Manager of the hotel, was quoted as saying bythe daily.

Hotels also hope to attract more domestic customers by reducing the room rates. Chinese usually make bookings two or three days before arrival and a lower price could attract moredomestic customers, Ctrip’s Wu said.

Hotels located in the Olympic village, Asian Games village and those near the Olympic stadia have greater demand for bookings and those located farther are now offeringpackages to woo customers, Ctrip said.

Lower ranked hotels are also gaining popularity from lowbudget travelers during the last few weeks, it said.

In July second week, about 78 percent of the rooms at five-star hotels in Beijing were booked at an average rate of U.S.D. 505.70, 3.6 times the rate a year earlier, Xiong Yumei,the Beijing Tourism Bureau’s Vice-Director said.

At the four-star hotels, 48.5 percent of the rooms were reserved, at an average rate of U.S.D. 320, 4.6 times higher that of last year, while lower ranked hotels had lowerreservation rates.

Beijing has 5,790 registered boarding facilities, including 816 star-ranked hotels, with 339,000 rooms and 665,000 beds. Of the star-ranked hotels, 119 had signedcontracts with the Olympic authorities.

Most of the contracted five-star hotels have been largely booked out, Xiong, was quoted as saying by official Xinhuanews agency earlier.

More than 200,000 employees have received training aboutthe Olympics, international etiquette and foreign languages.

Many Western food chefs in contracted hotels also learned tospeak English or use body language.

Authorities have also selected 598 home stay households,offering 726 rooms for more than 1,000 potential guests.

Travel agencies from Japan, the United States, Canada, Chile, Singapore and Taiwan have considered renting rooms from these families, which offers foreign visitors a chance toexperience Beijing citizens’ real lives, an official said.

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