But come summer the equilibrium of the balance is regained once again and everyone finds one ’ s place again . In other words , between April and October everyone will be selling at their established rates . A quick look at Booking . com or other online sites quickly confirms this point of view .
Some of the 3 star hotels in Malta have a figure / level below which their rates cannot drop . This is not necessarily a question of profit but more so one of cash flow due to the commitments that one has undertaken . Some people believe they should never reduce their rate , that everyone should stick to the published rates , but the market or a specific period may demand a different point of view . In this scenario rates are more based on supply and demand and you have no option but to reduce . Obviously enough , some hotels have the strategy that their rates will be allowed to continue to drop even to selling at Euro 22 per room per day ( as seen online from some operators ) which really means a net income to the hotel in the region of around Eur8 per person per day . The hotel must take into account its facilities when factoring their minimum base rate ; the heating of an indoor pool is an additional cost too . Similar 3-Star hotels which do not have this kind of overhead can be able to cope better with rate changes than others .
Those 3-Star hotels which do not incur overheads originating from an enhanced value proposition will find it easier than those which do to sustain drops in room rates .
Some 3-Stars run on a bed and breakfast concept so as to avoid the additional costs of having a full kitchen running all day whilst others offer breakfast and dinner only . Then there are those which provide a full restaurant service , coffee shops and other ancillaries 24 / 7 . The amount of repeat business that one gets directly reflects this method of planning .
Pricing cannot be put down on paper and simply left at that : there are far too many variables involved . At least this is how the 3-Star hotelier sees things . It ’ s all a question of supply and demand . Nonetheless the numbers are increasing all year round , and winter accommodation is now becoming more and more positive in the 3-Star sector . The summer months are , needless to say , highly positive .
Quality tourism and the 3-Star hotel
When there was talk of implementing a quality image for Malta around the higher classifications the impression could have been given that the 3-Star category could be done away with . Although most agree to the concept of working towards a quality tourism level one must ensure that this does not mean to the exclusion of the 3-Star category . Hoteliers in this classification had good reason to be apprehensive ,
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Q1 | 2017
HOSPITALITY MALTA