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Best Western Romania: dropping tariffs impacts on hotels affiliating potential

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Malin Malineanu, development coordinator of Best Western Romania stated that there would be a dramatic battle of tariffs on the local market, as units of 3 to 5 stars already drop rates by approximately 20-30%.

In Malineanu’s opinion, reducing tariffs is not the solution, mostly because it doesn’t mean that the traffic will significantly increase.

The costs pressure will make it hard to affiliate units. At present, when the hotels competitiveness is challenged and the sales policy is not working, affiliation to a chain is critical. On the other hand, due to the restricted financial resources, it is hard to take the necessary steps to affiliation, said Malineanu.

Best Western chain plans to have 16 units on the local market, but the number of affiliated hotels will probably be lower as a result of the actual situation. Until now, Best Western affiliated 12 hotels in Romania.

Malineanu is convinced that the market will not have a comeback until the end of the year, more and that the tension will continue in 2010, as well.

In Romania, under 1% of the existing hotels are affiliated to international chains, according to industry specialists.

Sursa: Ziarul Financiar [04.03.2009]

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