Western Cape Business News

Send  Share  RSS  Twitter  30 Sep 2009

HOSPITALITY: No Need For Hotelroom Price War


Recent Western Cape Business News

Best Available Rate, often referred to as “BAR” will certainly not be a thing of the past, nor does Cape Town-based Protea Hotels envisage a price war in the hospitality industry leading up to 2010 or leaving a legacy post this auspicious occasion.

Whilst the current global economy has seen a natural tightening of all purse strings from corporate to consumer, this does not, according to Protea Hotels, necessitate the need for a war based on discounting price deals.

It is all about creating the right product for our customers - special offers (which have barriers to entry) are the way to stimulate demand,” said Danny Bryer, Group Marketing and Revenue Director, “If products are priced correctly there should be no need for a price war of any kind.”

Protea Hotels constantly innovates leisure packages that are tailored for a variety of customer requirements. These packages are available for purchase on any number of channels (, other websites, travel agents, Protea’s Call centre etc.) where the group ensures that there is parity in the price.

BAR on the other hand has ‘no’ restrictions and is priced competitively and therefore ensures that the customer is receiving the best price at any point in time. Protea Hotels insists that there is absolute transparency by its distribution partners when it comes to commissions, bookings fees etc. so that the customer is ensured that they are getting the best deal.

Take the airline industry for example – booking in advance allows consumers and tour operators alike, to negotiate better deals and this is much the same for the hospitality sector.  Better planning leads to better and more cost effective packages,” continued Bryer.

Protea Hotels subscribe to a dynamic pricing philosophy where consumer demand is monitored constantly through its matrix of proprietary predictive modeling tools that have been perfected over the years. 

From being the first hospitality organization in South Africa to implement this method, the group has been able to correctly forecast demand and is therefore able to offer upfront packages and determine BAR which is available to everyone who asks.


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