The strategy adopted by the unit’s manager is to cut rates to ensure a constant client-flow. However, in the context of the economic crisis, the occupancy rate of local hotels could drop to a mere 60 percent. “A single room, with breakfast included, will cost RON 459 [some €119],” said Bodin. The manager had recently added that Radisson SAS’s rates start at €220, while the presidential suite costs €5,000.
Bodin said that the crisis will affect Romania, and its effects are already visible on the hotel market. The impact is stronger in the financial sector, as banks reduced loans, which means that the number of transactions will drop. The construction sector is also affected, with fewer consultants travelling, which is a bad thing for airlines and hotels.
“I do not think we will see a drastic change in prices of airplane tickets, despite the fact that the price of oil has plunged, probably because reserves were bought when prices were much higher,” Bodin added.
Bucharest’s five-star hotel market is divided among eight players: Radisson SAS, JW Marriott, Athenee Palace Hilton, InterContinental, Crowne Plaza, Howard Johnson, Casa Capsa, and Carol Parc.
