Beijing hotels cut rates ahead of Olympics

“The reasons could be multiple and the price cut during the Olympic is now a trend,” Wu Jiaoli, a press officer with the NASDAQ-listed Ctrip.com, said.

“One reason is that the occupancy rate is less than expected; another is to undercut competitors at the last moment,” Wu said.

The three-star Beijing Fuhao Hotel has cut its room rates 20% during the Olympics compared with June, even though the Olympics occupancy rate is about 70%.

“We want to attract more guests during the Olympics at the time people are about to finalize their travel agenda,” Tian Ye, sales manager of the hotel, said.

Lowering the price at this time could also help to attract more domestic customers, Ctrip's Wu said.

Chinese tourists differ from foreign tourists in their tendency to make reservations two to three days before arrival. A lower price now could hence attract more domestic bookings, Wu said.

The Beijing municipal tourism bureau said on July 11 that the occupancy rate in five-star hotels had reached 77%, while that of four-star hotels was only 44%.

But with the Games approaching, lower-ranked hotels are gaining popularity, judging from growing reservations from budget travelers during the past weeks, Ctrip said.

In terms of location, reservations have been concentrated in the Olympic Village, Asian Games Village and hotels near the Olympic stadiums.

Hotels located farther from the Olympic stadiums have also begun providing packages in a bid to attract customers, including offers of breakfast vouchers and souvenirs, Ctrip said. (Xinhua)