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Friday, July 26, 2013

How can an Airplane Disaster's effect Hotel Bookings ?!



How  can an Airplane Disaster's effect Hotel Bookings ?!



Just after I read the news of Asiana plane crash in San Francisco , I check the rates in the Hotel's in the area of San Francisco International Airport on Trivago.com . TRIVAGO needs approximately 30 minutes to synchronize the Prices from the main Booking portal such as Booking.com or Venere.com.

On Trivago the prices was around 80 $ for a room , but if you click to book and Trivago sends to you on Booking.com , immediately I found that all the room's was on RackRate. More than 300 $... shortly after the crash showing the some hotels had boosted their prices dramatically – one over 600%. In an example that they highlighted, the Best Western in South San Francisco was returning room rates of $999 for the night of the flight cancellations. A normal night at the hotel costs around $149.

What happened ?!



After cancellations of all flight's in San Francisco Airport, was a terrific demand of room's to spend the night until the airport run normally. Thousand of people wanted a Hotel near to the Airport to be sure that when their flight will be ready they will take it. Revenue manager fast modify the prices directly in Rackrates to afford the demand, and to take fully advantage of the situation. Half of the room needed for the flight staff of the company and the other half for poor travelers. Airplane Company have contract with Hotel near to the airport for their staff ,so the Hotel's can't modify the price for them . But for travelers of course

It is moral to do after a disaster like this where 2 people die and a lot injured, when people spend all the day in the airport waiting for a flight witch delayed.... I don't judge

Business is Business




I remember The 2010 eruption of Eyjafjallajòkull Volcano in Iceland witch cancel all the flight's in Europe for more than 4 days.


I was in Anversa Belgium on Holiday and get stuck there for 4 day's , Hotel price go up in all the Area of Brussels International Airport and Charleroi Airport . Personally had to pay this High rate's but in my hotel in Rimini people who should take a flight , stay 4 days more .

It isn’t OK for the consumer I understand

But when a disaster like the South Pacific Tsunami in Indonesia cancel all the booking of the hotel's for more than 3 month's . Who compensate the Touristic Industry witch is the most important industry in that Island ?! Earthquake in Tahiti ?! The Arabian Spring protest ?! Egypt Protest ?! Occupy Gezi park in Istanbul?!

So one time you can take advantage from a disaster and one time suffer from one.



Just like every business we try to survive in this difficult economical moment.
And the Touristic Industry is the first Economical Industry that suffer from the crises , Remember just 5 years before the hotel and vacation Rate was 30 % higher than now,  when everything cost more and we earn less .
But be optimistic thing will change 

See you

Klement Hasaj







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