Sofias Business Hotels In Price War

Sofia's five-star hotels have been cutting prices since the beginning of 2008 because of a decrease in the number of business tourists, Ivan Angelov, Grand Hotel Sofia's general manager said, as quoted by Dnevnik daily on March 14.

The competition between high-quality hotels has been driven even further with the launching of several new developments. Supply is increasing, while demand is falling, thus leading to a price war between the hotels.

In 2007 there were a number of business and governments' delegations, connected to the Bulgaria's EU accession, but than a dramatic fall in the number of tourists followed. “This is a seasonal phenomenon,” Angelov said.

This year would be a difficult one for business hotels, Angelov added. It would become clear whether a hotel is really business orientated or just claims to be so. “If you want to manage a business hotel you should answer your target's requirements and forget about low-budget groups,” Angelov said.

Accommodation prices in some of the five-star hotels dropped by 20 per cent, reaching 50-70 euro a night level, even for corporate clients, in attempt to attract three- and four-star hotels' clients.

The fall in prices is negatively influencing the market, Angelov said. The hotel managers should work on the services' marketing and on offering new and improved services that will not only keep old clients but will attract new ones. There are more than 200 hotels in Sofia, and the market is close to over-supply already, Angelov added.