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I dont think it is to satisfy demand, I actually work for a major hotel in that area and work in the accounts department so know exactly how many rooms we have left to sell and what rooms are available in the city at times. It is a growing market but my point is we are all raising our rooms rates just to beat each other and the customer is the one who ends up losing out, however if they are daft enough to pay £240 room only in August then that is there choice. Yes we bring in a lot of cash but at the end of the day profit is not as important as customer service (don't let my GM read this or I might be sacked!) To view links or images in this forum your post count must be 5 or greater. You currently have 0 posts.
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You're saying that rates are rising but the increase in rooms is not to satisfy demand?
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More rooms mean more competition and thus cheaper rates for the customer. And if I was your GM, I would be saying that good customer service=increase in profit.
With the growing market, more rooms will be needed otherwise prices will rise.