Why are prices in starless hotel “Europa” so high”?
The department of pricing policy of Minsk City Executive Committee is unaware of the fact that the hotel “Europa” has not been classified as a five-star hotel yet. ERB informed that a commission of the Belarusian State Institute of Standardization and inspection certification (the only institution in the country that can give out international certificates) gave the administration a chance to get rid of all draw-backs. According to the head of the certification sector Lyudmila Vokuts, the hotel has not sent any appeal for final certification yet. Probably some draw-backs are still remaining and “Europa” will be able to achieve the star status only in October. For example, the cheapest room in a four-star hotel “Minsk” costs 140 dollars while in “Europa” it is 313 euro. The difference in the prices is 300 dollars.
ERB asked Lyudmila Vokuts whether it was legal to set such prices.
Lyudmіla Vokuts: The pricing policy is one of the biggest problems of our republic because we do not have a corresponding document. So, the hotel category does not affect the price of a room.
However, the chief accountant of “Minsk” said that they would increase their prices if their hotel got the five-star status.
Chief accountant: The more stars a hotel has the more expenses there are: rooms will become much more comfortable and fully furnished. That will be another sphere of service. Of cause, the prices will rise together with the expenses.
All prices of Minsk hotels have to be approved of by Minsk State Executive Committee. At the same time, the head of the department of pricing policy of the Committee of Economy Iosif Rachynski did not even know that “Europa” was not a five-star hotel. The question how the Executive Committee confirmed the current prices arises (first the price is set by the economic and financial department of hotels and then is should be approved of by Minsk City Executive Committee).
Speaking about high prices Iosif Rachynski noted:
Probably they set such prices because they are in popular demand. Decree #285 does not influence this sphere of service.
To tell the truth, the demand grew only on the City Day – 80% of rooms were booked. Today the number is lower. The price for every room in “Europa” was set before the opening of the hotel so it is difficult to understand how the administration could know about the demand. ERB turned to the hotel to hear comments on the reasons for such high prices. The chief accountant refused to talk explaining it by the fact that it was confidential information.
Photo by — www.hoteleurope.by
ERB asked Lyudmila Vokuts whether it was legal to set such prices.
Lyudmіla Vokuts: The pricing policy is one of the biggest problems of our republic because we do not have a corresponding document. So, the hotel category does not affect the price of a room.
However, the chief accountant of “Minsk” said that they would increase their prices if their hotel got the five-star status.
Chief accountant: The more stars a hotel has the more expenses there are: rooms will become much more comfortable and fully furnished. That will be another sphere of service. Of cause, the prices will rise together with the expenses.
All prices of Minsk hotels have to be approved of by Minsk State Executive Committee. At the same time, the head of the department of pricing policy of the Committee of Economy Iosif Rachynski did not even know that “Europa” was not a five-star hotel. The question how the Executive Committee confirmed the current prices arises (first the price is set by the economic and financial department of hotels and then is should be approved of by Minsk City Executive Committee).
Speaking about high prices Iosif Rachynski noted:
Probably they set such prices because they are in popular demand. Decree #285 does not influence this sphere of service.
To tell the truth, the demand grew only on the City Day – 80% of rooms were booked. Today the number is lower. The price for every room in “Europa” was set before the opening of the hotel so it is difficult to understand how the administration could know about the demand. ERB turned to the hotel to hear comments on the reasons for such high prices. The chief accountant refused to talk explaining it by the fact that it was confidential information.
Photo by — www.hoteleurope.by
