Kyiv’s top ho­tels raise prices in hopes of cap­i­tal­iz­ing on Euro­vi­sion tourists

Kyiv Post - - National - BY TOMA I STOMINA ISTTOMA@GMAIL.COM

It’s a law of eco­nomics that if de­mand rises while sup­ply re­mains the same, prices will go up.

And while the Euro­vi­sion Song Con­test, with its ex­pected in­flow of tourists, comes to the cap­i­tal only in May, the law of sup­ply and de­mand is al­ready ef­fect­ing the prices of ho­tel rooms in Kyiv: many have dou­bled rates for the pe­riod of the event – May 9–13.

At the five-star Premier Palace ho­tel in cen­tral Kyiv, for in­stance, the price of a night in a stan­dard room is cur­rently around $170. That rises to $333 for the five-day pe­riod of the con­test, and then drops down to $187 af­ter­wards, ac­cord­ing to the ho­tel’s on­line book­ing sys­tem.

Some 20,000 peo­ple are ex­pected to come to Kyiv for Euro­vi­sion, but not all of them are ex­pected to book rooms in the cap­i­tal’s swanki­est ho­tels. And Olek­siy Reznikov, the deputy head of Kyiv City State Ad­min­is­tra­tion, be­lieves that even with the in­creased de­mand, there’s no short­age of sup­ply, and thus no jus­ti­fi­ca­tion for ho­tels to jack up prices.

“In the three- to five-star ho­tels alone there are 19,300 rooms for the guests,” Reznikov told the Kyiv Post. “This num­ber doesn’t in­clude hos­tels and ho­tels with lower rat­ings.”

The Kyiv City Coun­cil in Fe­bru­ary even called a meet­ing with rep­re­sen­ta­tives of the ho­tel busi­ness in the cap­i­tal to try to per­suade them there was no need to raise prices dur­ing Euro­vi­sion. Ac­cord­ing to the coun­cil, the ho­tel rep­re­sen­ta­tives promised to set “eco­nom­i­cally jus­ti­fied rates” for the pe­riod of the con­test.

All the same, most of the ho­tels whose rep­re­sen­ta­tives at­tended the meet­ing with Kyiv City Coun­cil went on to set higher rates for the pe­riod of the con­cert any­way. The ho­tels that have in­creased rates in­clude, as well as the Premier Palace, the Al­fav­ito, Fair­mont, Hy­att, In­ter­Con­ti­nen­tal, 11 Mir­rors De­sign Ho­tel, Khreschatyk, Hol­i­day Inn Kiev, the Radis­son Blu, and the Deluxe.

Apart from rais­ing their prices, Premier Palace and 11 Mir­rors De­sign Ho­tel are also tak­ing a min­i­mum book­ing of two nights for the pe­riod of the con­test. The head of the book­ings depart­ment at Premier Palace, Sergiy Varchenko, said this book­ing and price pol­icy would do no harm to Ukraine’s im­age as a hos­pitable coun­try.

“For this pe­riod there’s high de­mand, so we’d pre­fer guests that want to stay for more than one night,” he said.

The only two top ho­tels not to in­crease prices for the pe­riod of the con­test are the Hil­ton Kyiv and the Pres­i­dent Ho­tel. Kristina Va­sylkova, the mar­ket­ing man­ager of the Hil­ton Kyiv, said Euro­vi­sion is a great chance for Ukraine to at­tract po­ten­tial tourists and build a foun­da­tion for long-term re­la­tion­ship with them.

“We want Kyiv to be­come a pop­u­lar tourist city,” she told the Kyiv Post.

But most of the other top Kyiv ho­tels, it seems, are con­tent to let eco­nomics laws work in their fa­vor. Royal

Build­ings in cen­tral Kyiv are re­flected in the mir­rored win­dows of the Hy­att Re­gency Kyiv, 5 Ally Tarasovoi St., on May 18, 2015. Ukraine this year hosts the Euro­vi­sion Song Con­test in mid-May and ex­pects up to 20,000 tourists to the cap­i­tal. Many ho­tels have al­ready raised prices for the event. (Anas­ta­sia Vlasova)

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