Luoyang Municipal Government has worked out a provisional rule to limit the room rates of hotels in the city during the coming 25th Peony Exhibition.
Luoyang implemented a maximum room rate limit during last year's exhibition and a government spokesperson says they achieved good results. So this year, they will adopt the maximum limit again to regulate room rates in the city and standardize the price levels to protect consumers.
The limits will be made following the "Price Law of People's Republic of China" and the National Development and Reform Commission's "Temporary Price Intervention and Emergency Measure during Special Periods". These provisions state that the maximum room rate can only be 20% more than the normal room rack rate.
For newly opened hotels, the price department will make a market price and a maximum price for them. After that, the price department will ask those hotels to publish their prices.
In order to regulate hotel services during the exhibition period, the management department will connect the room rate with the hotel service: if local auhorities receive complaints about a hotel's service quality, facilities, sanitation or safety, the hotel's room rate will need to be reduced. This penalty will hopefully cause hotels to put consumers foremost in their minds.
At present, the maximum room rate of each hotel is still under discussion. The price department has already issued a notice to all the hotels in the city to require them to apply maximum limited room rates voluntarily. Besides the room rate, the price department will also intervene if the ticket prices and park fees during the exhibition period are too high at scenic spots.