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Hotels cut room rates by 20pc to combat slump

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Hotels are cutting their rates by 20 per cent on average to attract guests in the post-handover slump.

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And amid the row over room rates for Japanese tourists, the departing hotel supremo advised guests seeking bargains to ask for the lowest price.

Hong Kong Hotels' Association former chairman Thomas Axmacher said tourists could be charged a higher price unless they asked for a discount.

Executive director James Lu Shien-hwai said rates, which fluctuate due to supply and demand, were 20 per cent down on average.

Discounts currently available include a four-star hotel at Tsim Sha Tsui charging $500 a night and a luxury hotel at Admiralty offering a 25 per cent cut to $2,350.

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Mr Axmacher said hotels used different types of room rates, and advised guests to understand them to avoid confusion: Rack rates - the price published by a hotel, normally charged during periods of high demand.

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