Hotel rates -- lessons from NASCAR
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Larry Thomas |
A couple of years ago, a friend of a friend gave me tickets to a NASCAR race in Bristol, Tenn., a tiny town near the Virginia border in extreme northeastern Tennessee. The half-mile track at Bristol is one of NASCAR’s most popular venues, and the 160,000 seats for the race had been sold out months in advance.
Knowing that the race wouldn’t end until after 11 p.m., I decided I would spend the night in the Bristol area rather than make the 3 ½-hour drive back to my home immediately after the event.
Although I began my hotel search only three weeks before race day, I managed to find a few properties with available rooms. There was one catch: my night’s sleep was going to cost me at least $150 to $200.
Being on a limited budget (lowly newspaper and magazine writers don’t make huge salaries, contrary to popular belief), I quickly ditched the idea of getting a good night’s sleep before driving home. Instead, I napped at two rest stops during my return trip and pulled into my driveway around dawn.
So yes, I know the frustration and anger of being faced with hotel owners who double and triple their rates during major events. The hotels in the Bristol area had a monopoly on a product that was in high demand, so up, up, up went the rates.
The same could be said for hotels in High Point, Greensboro and Winston-Salem area during furniture market. Unfortunately, nearly all of you who will be in town for market next month won’t have the option of driving home at night.
But do the hotels here really have a monopoly? I would argue that it’s no longer the case.
I believe the new Las Vegas market will dramatically change the economic playing field for hotels here. With high-end properties such as the Bellagio selling rooms for $169 and the Paris quoting rates as low as $105 for the inaugural show in July, many High Point attendees are wondering why they should pay $150 to $200 or more per night for properties with far fewer amenities.
I just hope the High Point-area hotel operators realize the seriousness of the new competition before it’s too late.
Organizers of the Tupelo Furniture Market are clearly aware of this competition, but unfortunately, their efforts to convince hotel operators to offer more reasonable rates have deteriorated into a nasty public spat.
As reported in the March 7 print edition of Furniture/Today, Tupelo market president Bill Cleveland sharply criticized local hotel operators in an article in Tupelo’s daily newspaper, the Northeast Mississippi Journal.
Last week, the hotel operators fired back, telling the newspaper that they are being made scapegoats for the lower attendance at the February market. One hotel operator even accused Cleveland of price gouging because he charges higher rental rates for furniture market exhibitors than those assessed exhibitors at flea markets that are staged several times a year.
Cleveland told the newspaper that flea markets and furniture markets are completely different businesses, so it’s not a valid comparison. Besides, he noted that Tupelo’s furniture market rates are lower than his principal competitors — High Point and Las Vegas. (for public comments click on "Add your Comment" below, or to email Larry directly click here.)
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Riley VanHorn commented:
As a High Point veteran in both retail and manufacturing, your article reminded me of some of my High Point experiences.
The Triad Housing Bureau had gotten us room reservations at the Cricket Inn in Greensboro. Our rate was $90 a night. Being a mom and pop operation, we drove all the way from Arkansas to High Point. Along the way, we say dozens of signs that said "Cricket Inn $29.95 per night." When we got there, a trucker was checking in. His rate, $29.95 for one night. When I asked if I could get the same rate, I was told because I was there for the furniture market, I would get the $90 for staying 7 days. If I didn't like it, I could go somewhere else.
When I went to work in management for Kinder-Harris, I got to stay in somebody's home in Jamestown. I shared the 3 bedroom house with 3, 4 or 5 guys. There were not restaurants nearby and of course no laundry service. Oh yes, if you sleep past 6:30 AM, you got a cold shower.
My last High Point market with Kinder-Harris involved a 3 hour ordeal in finding a cab and a cab driver who got lost.
Is it really any wonder that out of state manufacturers and retailers hate coming to High Point?
As an outsider these days, I can make the comment that High Point is going to be in trouble if the Las Vegas crowd can get enough non-eastern vendors to commit to leasing space.
Larry Thomas commented:
Yes, Gene, we've also heard lots of stories about price-gouging by restaurants. However, you are the first one who has said some of them double their menu prices. But regardless of the amount, I agree that any type of price-gouging is disgraceful.
Gene commented:
I whole heartedly agree with you. I have also noticed that many area resturants do the same thing. Bringing out new menus with double the price for a meal. It's a shame and disgrace. Whatever happened to Southern Hospitality ? I work with the furniture industry in Asia now and have for the past four years. Quite frankly I'm ashamed of the greed that I see in America today.
Robert Triplett commented:
The hotel industry in High Point is just about as dumb as the furniture manufacturing industry it's attached to at the hip. Las Vegas or China, more to offer at lower prices. Get used to it, empty hotels to go along with the empty plants. Better get a tobacco allotment...oh wait, that's going away too.
Larry Thomas commented:
Thanks for writing, Paul. The Chicago market was long gone before I joined Furniture/Today in the late 1980s. Do you or any other readers know what caused its demise?
paul sciria commented:
What a fact fill piece !
They just don't get it , oh well Chicago went down and it could be in the distant future a strong Vegas could do the same for High Point . Remenber Hickory ?
Lets face it the Triad compared to Vegas . Even the wife wants to go . Need a date , they have that too .
