Paxton Hotel owner Werner Teterseil said the hotel had noticed a significant decline in recent months and he had made provision for this by offering discounted rates.
“The discount is not across the board, but we have reduced some prices by at least 10 per cent. We regularly offer special rates to our customers.”
He also said despite international groups getting smaller, the hotel would not resort to laying off any staff.
“We are not retrenching anyone because we have a strong team on board and we really need them. Also, the recent drop in the interest rate will mean consumers have more disposable income which they might want to spend here,” he said.
City Lodge general manager Glenn Pattin said the downturn had not affected the hotel drastically because it relied more on corporate travellers as opposed to leisure travellers.
“We have noticed a bit of a drop over weekends with the small number of leisure travellers, but I am sure those in the leisure business are feeling the pinch much more than we are,” he said.
Humewood Hotel manager Dave Snuggs said because of Port Elizabeth‘s strong corporate market, the hotel had not seen any reason to cut prices.
“We have seen people thinking twice about eating at the hotel. Instead of people going to the restaurant we are seeing more take-away boxes in the passages, so people are trying to save where they can.”
He said he had also witnessed a significant drop in international visitors, group sizes and there had also been more cancellations.
Hewson and Dreyer owner Johann Dreyer said an increase in marketing drives had allowed them to keep occupancy levels up without needing any price reductions.
“We have embarked on a massive marketing venture which has seen us improve our computer systems so that we are linked to reach travel agents from all over. We also now have one of the most sophisticated websites and a call centre so that we are easily accessible,” said Dreyer, whose business ventures include Hornby Lodge, Beacon Lodge, Crow‘s Nest, King‘s Tide Boutique Hotel, Bedford Bed and Breakfast and the Willows.
“You need to increase your marketing and also market smarter because you cannot do what you were doing last year. Harder times means harder work.”
However, Dreyer also attributed the good figures to his businesses falling into the more affordable price bracket when compared to hotels.
He also said his core business was more domestic than international, and an upgrade of facilities, linen and beds had ensured that guests still got the best possible accommodation at reasonable prices.
Port Elizabeth Metro Bed and Breakfast Association chairman Walter Passet said members had definitely noticed a decline in occupancy levels over the past festive season, mainly attributed to the decline of international tourists.
“During our meetings we get feedback on occupancy levels and have discovered numbers are down by at least 12% to 15%. However, bed and breakfasts cannot afford to make drastic price cuts as we do not charge as much as hotels. We simply will not break even.”
He said owners of bed and breakfast establishments in the metro needed to stay positive and provide the best possible service in order to attract potential customers.
“We help each other by sharing information that will help us to be more cost-effective, like where to buy the best quality linens for reasonable prices and other supplies that we can save money on.”
However, Passet admitted although many members in the association were frustrated and despondent, they were all hanging on for 2010.
“Also the Indian Premier League cricket series being played in South Africa will help a lot. Lowering prices will not attract international tourists ... They are cancelling because they simply cannot afford to travel at the moment.”
Source: The Herald
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