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The prices:
All guests of Kiev hotels agree that the prices for numbers are overestimated, and quality – is far from the international standards. The opinion is confirmed also with experts’ comments. The director of hotel real estate group of consulting company DTZ, David Jenkins considers that all claims of hotels visitors during the pre-crisis period have been justified.
At conditions, being much in demand and restricted invitation hotel were able to ensure its capacity, despite high rates on residing. Crisis has aggravated competitiveness between hotels that today, in spite of market positioning, are ready to struggle for all clients - from corporate to business tourists.
According to consulting company Knight Frank, there works 126 hotels and 9, 7 thousand suits in Kiev, about 80 % of average and low segments. DTZ have noticed that during pre-crisis time hotels in central part of the city were filled in on 60-65 %, today – on 35-45 %.
Crisis has affected prices also - at first half of the year hotels lowered tariffs, by different estimations, from 15 to 40 %. For residing the standard suit at 3-stars hotels it was necessary to lay out on the average 90 dollars, in 4-stars – 230 dollars, in 5-stars – 588 dollars per day.
But, despite significant "crisis" decrease, suits cost in Kiev 4-5-stars hotels still above than in capitals of European countries.
At the same time, the average cost of double standard suits in hotels of four-star category in Moscow constitutes 170 Euros. (Junior suites – 240 euros, lux – 285 euros) per day, in Budapest – 75 euros (junior suites – 100 euros, lux – 212 euros), Bratislava – 175 euros (junior suites – 225 euros, lux – 275 euros), Vilnius – 85 euros (junior suites – 135 euros, lux – 350 euros), Rome – 140 euros (junior suites – 190 euros, lux – 215 euros), Prague – 90 euros (junior suites – 105 euros, lux – 240 euros), Minsk – 170 euros (junior suites – 190 euros, lux – 240 euros).
Reasons for expensiveness:
Pricing is a specific thing. Forming a room rate in a new hotel, the management company is not guided by the western networks of a similar category, or by role of competitors’ prices. Though, the market is being carefully monitored.
Manager of recently opened Kiev boutique-hotel of business class, City Park Hotel, Andrey Shevchyuk recounted - «Pricing was guided, first of all, by a conjuncture of the market – how many our clients are ready to pay for services rendered by hotel. It is usual bookkeeping account - a wasteful part and prospective profit». As he said, the cost price is advanced by a site and property value. And as Kiev – one of the most expensive cities in Europe, hotel accommodation also cannot cost cheaper. Thus, investors need to pay back committed facilities, considering that building began at pique of property value, construction materials and the land. Furthermore, according to experts, it is also considered the cost of suits and the corruption component, expensive credits, and also complexities with reception of the allowing documentation that drag out building process.
According to experts, the hotel recoupment has grown today and constitutes 8-12 years. Thus hotel holders’ profitability level still remains secret.
Euro-2012 is only eight days
Expectations from visitors placing throughout eight days of the championship are not supposed to be iridescent for hotel operators. Especially chamber hotels are in vision places in which tries to be reserved by TUI Travel. If hotels with the big number fund can allocate a part of suits, small hotels are in menace with losses.
Mr. A.Shevchuk, manager of Kiev boutique-hotel of business class, City Park Hotel, comments that municipal administration makes them to sign an agreement unprofitable for one part. The essence is to render enormous discounts for Euro-2012 realization.
The future championship and UEFA requests force hotels to rush about two fires: on the one hand, there is a press on behalf of local authorities – they need to ensure places for residing, and on the other hand, holders of hotels do not wish to lose earnings, all the same such possibility to pay back at least a part of committed facilities for them and investors drops out infrequently.
TUI Travel attends to service only UEFA. Ten thousand fans arriving to matches, most likely, will search for suits through systems of on-line booking. «It is going to be realized with Internet on 85% », - mentions E. Samartcev.
While hotels, on requests of TUI Travel, are forced to keep prices down essentially on suits declared in agreements on UEFA placing, there are bases to believe that cost of other suits, not involved in this process for the period of championship, will grow.
«We wish to convince our hotel business that Euro is simply a format of correct Ukraine’s image advancement at European market. Everybody perfectly understands that those some days, when there will arrive fans and will give money, are not so critical in scale of general hotel business, even if there will be a half-million of fans», - the head of the National Council has explained.
Experts approve that government programs, lists of objects in any way do not help to realize projects. And if in the maximum price segment it is possible to count hotels, there will not be reached in the foreseeable future to development one- and two-stars hotels. That, of course, will help operators and investors presented at market.
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