Exorbitant hotel rates expected in the upcoming year
Struggling to check the escalating hotel costs during peak events, the Russian Federal Antimonopoly Service (FAS) is contemplating a methodology to set price caps for hotels during major forums such as the Eastern Economic Forum (VEF) in Vladivostok. However, for now, things remain status quo, and hoteliers are gearing up to profit from the business extravaganza, as reported by PrimaMedia.
We've devised a system to predict accommodation prices during select days of these forums in three cities – St. Petersburg, Sochi, and Vladivostok – during international events. This straightforward mechanism, though limited to three cities and three events, is a step towards controlling the obscene price surge during international gatherings.
This unapproved mechanism has sparked debates among key figures. Maxim Shaskolsky, the FAS head, explained that any recommendations will only come into play after the St. Petersburg International Economic Forum (SPIEF), occurring this year from June 18-21. Given the sky-high hotel prices in Vladivostok for early September, it's evident that any recommendations would be too late for the VEF.
Addressing the high accommodation prices during international forums is crucial, said Shaskolsky. Such events receive massive state investments in infrastructure, transport, communication, and security. According to him, such exorbitant prices make the events less accessible and limit participation possibilities for investors and delegations from developing countries.
Affordable Accommodations: The Debate Continues
Implementing hotel price regulation during major events can be tricky due to various legal, economic, and market factors. price caps, room allocation controls, promoting alternative accommodations, and government incentives for reasonable prices are potential solutions. However, concerns about the economic impact, legal challenges, market dynamics, and international comparisons persist.
In light of these challenges, finding a balance between making events affordable and economically sustainable is crucial. Enforcing regulation could affect hotel revenues, disrupt market dynamics, or create compliance challenges. Ongoing discussions likely revolve around balanced economic policies that cater to both affordable accommodations and economic viability.
Travelers and lifestyle enthusiasts may find it challenging to book affordable accommodations during major forums such as the Eastern Economic Forum (VEF) and the St. Petersburg International Economic Forum (SPIEF), due to the potential implementation of price caps for hotels. Despite ongoing debates on hotel price regulation during international gatherings, addressing exorbitant prices is essential to make these events more accessible and promote participation from developing countries.
