Reports on overpricing by Cape Town accommodation establishments are based on perception rather than reality, according to an independent survey conducted by capeinfo.com and endorsed by Cape Town Tourism (CTT).
 
The survey was launched in January to establish accommodation booking and pricing trends for the 2010 FIFA World Cup.
 
According to CTT, it revealed the majority of Cape accommodation establishments were charging responsible rates during the forthcoming tournament. The survey shows that in January, 31,63% of respondents were charging the same price (or less) as they would in peak season. That amount shifted to 57,37% in February.
 
The survey also shows that 75,32% of establishments are currently charging no more than 20% above their peak season rates. Establishments that received bookings were up from 34,61% in January to 46% in February. 
 
CTT spokesperson, Lianne Burton, says: ‘The astronomical prices of luxury private villas on the ocean’s edge are not a true representation of the cost of staying in Cape Town during the 2010 FIFA World Cup.”
 
The Cape tourism industry has committed itself to a code for responsible pricing aimed at preventing price gouging, mindful that exploitation undermines their own sustainability as it discourages repeat business. “We are encouraged that many of the businesses that are guilty of overpricing have now embraced the call by CTT and Fedhasa to cap rates in the region of peak season levels,” says Burton.
 
After attending the WTM in London in November, Burton found that overpricing was a bigger issue for UK travellers than perceptions of safety and security. She also reminded tourism business owners that Sydney and Athens experienced a decline in visitor numbers after their Olympic events due to perceptions of greed. 
 
“We know that, in line with current travel trends internationally, there will still be a lot of last-minute bookings, but we cannot afford to be complacent and allow a skewed perception of pricing to turn a potentially positive experience into a highly negative one. We are on the tail end of a recession, one that hit America and Europe very hard. These are key FIFA World Cup source markets and they need a great value proposition, right now,” she says. 
 
CTT will soon launch a dedicated section on its website (www.capetown.travel) where members who adopt responsible pricing in line with the code can advertise. 
 
The accommodation survey will continue to track changes in availability and pricing trends with monthly surveys until May. It can be completed on http://capeinfo.com.