Woke up to this:
Hoteliers should not offer rooms at too low a rate as it will give an impression to foreigners that their services and rooms are of poor quality, said Datuk Seri Najib Tun Razak. [Source]
Now I don't know where our Prime Minister seems to be getting his advice (assuming he is advised on these matters), but it doesn't make good sense. Low prices are a natural result of competition, especially in the hyper-competitive KL city centre hotel business. And most hotels are franchised anyway - a Hilton is a Hilton wherever you go, as with Westin, Ritz Carlton etc. And if the 5 stars are not willing to lower their prices, then the comparable 4 stars (e.g. Impiana) will.
The PM also notes that such an approach will not increase sales - wow, is he spending his time looking at the hotel books? Obviously, he does not understand why the grand 5 star hotels, who have been in this business for quite some time, would want to lower their prices (hint: to attract sales)
As a former purchaser, I dealt with innumerable hotels and I can say that if he is refers to hotel rack rates as under-priced, then the corporate rates we MNCs are getting would make these hotels looks like mamak shops.
Now if he means that low prices by themselves give foreigners an impression that hotels are of low quality, then are we going to ask our restaurants, shopping centres and private hospitals to raise their prices? Unless I'm mistaken, foreigners come to our country precisely for these "cheap" things. If they wanted expensive + high quality things they'd go to Europe.
Alright, /rant.
The PM also notes that such an approach will not increase sales - wow, is he spending his time looking at the hotel books? Obviously, he does not understand why the grand 5 star hotels, who have been in this business for quite some time, would want to lower their prices (hint: to attract sales)
As a former purchaser, I dealt with innumerable hotels and I can say that if he is refers to hotel rack rates as under-priced, then the corporate rates we MNCs are getting would make these hotels looks like mamak shops.
Now if he means that low prices by themselves give foreigners an impression that hotels are of low quality, then are we going to ask our restaurants, shopping centres and private hospitals to raise their prices? Unless I'm mistaken, foreigners come to our country precisely for these "cheap" things. If they wanted expensive + high quality things they'd go to Europe.
Alright, /rant.
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