The stories have been around for a while now but they’re starting to pick up a bit: Various accusations of price gouging, dark warnings and strenuous denials from the hospitality industry.
“New Zealand risked tarnishing its reputation as a fair nation through greedy accommodation operators cashing in on Rugby World Cup hosting rights, Jasons Travel Media chief executive Matthew Mayne said.”
Over the coming months we’ll be be looking at examples where punters seem to be being asked to pay over the odds for accommodation during the 2011 Rugby World Cup. Price gouging or an example of Capitalism in action?:
- A one bedroom apartment on Auckland’s Princes Wharf, presently being advertised on Trademe for $1,500 a week, available from 1 Sept 2011, minimum tenancy period 4 weeks LINK
- And here’s the LINK for a Google cache of the same property, same listing number, advertised as being available from 1 March 2010 for…wait for it…$355 a week. Minimum tenancy period not stated.
We note there are no takers, yet. Price Gouging an Own Goal We Love Rugby issued a press release slamming price gouging in New Zealand, saying that attendances could suffer as a result:
“Attendances at the 2011 Rugby World Cup in New Zealand could be the lowest ever for international fans with Australia’s largest rugby tour operator; We Love Rugby today refuting claims from the Hospitality Association of New Zealand’s Bruce Robertson that fears surrounding hotel rates during the 2011 Rugby World Cup were an “Australian beat up… “We have all seen what has happened at the 2010 FIFA World Cup in South Africa where tourists are staying away in droves against a backlash of high hotel and transport prices. We saw it at the 2007 Cricket World Cup in the West Indies as well.
If New Zealand think they are immune to the same thing happening then they need a reality check.” Livingstone said. “The $1,700 per room per night with a minimum 10 night stay at the Hilton Auckland example is not isolated. We have a list of hotels that have all increased their rates by 400% and some by up to 1,000% from their normal rates.” “If you look at the rate for the Hilton Auckland of NZD$1,700 compared to the rate that we were charged at last year’s Bledisloe Cup NZD$440 which is a peak travel date, then you must appreciate that rugby fans are starting to seriously consider their options.”
“It’s not isolated – the Hyatt Regency is charging $763 per room per night and we paid $190 per room per night at last year’s Bledisloe Cup peak period. Sky City Grand are charging $1050 per room per night when we paid $309 when we used the hotel during the 2008 Bledisloe Cup and the list goes on.” “It’s not just the Auckland hotels, the Grand Chancellor hotel in Wellington are selling rooms for $859 during the period when Australia play rugby minnows USA. We paid $399 per room per night six months ago during the Bledisloe Cup. The Sofitel in Queenstown is selling rooms for $940 during the semi-final and Final period which is held on the other side of the country in Auckland“
“We are not beating this up. The NZ press came to us asking about it, we simply answered their questions…”
If you spot any reports of price gouging send us the link.
28 June 2010
The government has voted down an amendment that would protect tenants from being evicted from their homes so that landlords could rent them out for major sporting events.
“Earlier this year, boarding house tenants were evicted en masse so that their rooms could be used during the Wellington Sevens. This put enormous pressure on social services and emergency accommodation providers which struggled to cope with the displaced and vulnerable people.
“There are already concerns in Auckland that the same thing is going to happen next year during the Rugby World Cup, especially with hotels charging such high prices. I spoke to the Minister months ago and alerted him to the issue. He chose to do nothing about it himself, and then voted against Labour’s attempt to rectify the problem…” source
E2NZ.org 
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