Average room rate at city hotels tumbles

Travel companies have said that the average room rate at three- to five-star hotels in Ho Chi Minh City has fallen by 10% in this low season for the inbound segment, although hoteliers said the price barely decreased compared to the year-ago rate.
The low season for the inbound segment normally lasts from April to September. Tour operators said that the room tariff just fell down by 5% at small-scale hotels but up to 10% at three- to five-star hotels, or even by 20% at some big hotels.
“The room rate in this season is down by 10% to 20%,” said Tran Vinh Loc, director of Lac Hong Voyages.
“Room tariffs in this season are softer than that in the same season of last year,” said Bui Viet Thuy Tien, managing director of Asian Trails Co.
A few months ago, some hoteliers predicted that the room rate would increase because of higher costs especially the high price of gasoline and electricity. But that prediction turned wrong, possibly due to a drop in international arrivals.
International travel companies in Ho Chi Minh City suggest that the number of foreign tourists to the country in this low season will be just the same or even lower than the number in the year-ago period.
Some hoteliers told the Daily that the average room occupancy this month was still high, but it will fall in the coming months. Several hotels have decided to lower the room rate a bit compared to the last year’s low season.
“We have promotions for the next two months because of lower bookings. However, our rate is down just slightly, from USD154 per night to around USD140,” said Nguyen Anh Vu, general manager of the five-star Majestic hotel.
He said the number of guests from Japan, the second biggest market of the hotel, is decreasing sharply.
In related news, the Ho Chi Minh City Department of Culture, Sports and Tourism has reported that the number of exhibitors to join the ITE Ho Chi Minh City 2011 scheduled for September 14 to 17 is better than expected.
“We’ve received bookings for nearly 70% of the total number of 270 booths at the event,” said La Quoc Khanh, deputy director of the department.
The department expects around 30% to 45% of all booths are registered by foreign exhibitors.
This annual international tourism event is aimed to promote joint tourism development of the four countries of Vietnam, Laos, Cambodia, and Myanmar.