Hotel rates will rise by a solid 20% this winter, according to president of Iran’s Hoteliers Society.
“Hoteliers have been instructed to apprise their guests and travel agencies of the price hike when making reservations to avoid any unwanted hassles,” Jamshid Hamzezadeh was quoted as saying by ISNA.
The decision has not been communicated yet and hotels charging the new rates will be held in contempt.
“But current rates may increase if hotel owners decide to scrap their discount offers,” Hamzezadeh noted.
In response to why hotel rates do not appear on his society’s official website, Hamzezadeh said, “Because no two hotels boasting the same star rating charge the same rates. Fees are influenced by the hotel’s location, year of establishment, the region’s tourism, and several other factors.”
Despite opposition from the private sector and economists to a fixed price system, every year in the Iranian month of Dey (December 22 – January 20), the society and Iran’s Cultural Heritage, Handicrafts and Tourism Organization, set hotel prices for the year based on inflation rates.
Experts argue that a free price system will lead to a more competitive market thus encouraging goods and service providers to improve quality.
Hotels in Iran are accused of overcharging and failing to provide services in accordance with their star rating. As a result, people are turning to other alternatives such as vacation homes which have hurt the hotel business.
