Is it legal to raise the price of hotels on May Day?

There are three kinds of prices stipulated in China's price law, namely, market-regulated prices, government-guided prices and government-set prices. According to Article 3 of the Price Law of People's Republic of China (PRC), under the macro-control, the state implements and gradually improves the mechanism that prices are mainly formed by the market.

The pricing should conform to the law of value. Most goods and services are subject to market-regulated prices, and very few goods and services are subject to government-guided prices or government pricing. Market-regulated price refers to the price set by operators independently and formed through market competition.

Generally speaking, the holiday hotel orders surge, the supply is insufficient, and the hotel price increase is logical. In addition, staff salary costs and hotel procurement costs will also increase during holidays. Therefore, at present, hotel rooms do not belong to the scope of government guidance or government pricing, and the price is mainly regulated by the market. Generally, it is not illegal as long as the price is clearly marked.

In order to maintain the basic stability of accommodation prices during holidays and protect the legitimate rights and interests of consumers and operators, many places implement government-guided prices for hotels, which means that hotel pricing cannot be set at will, but subject to market supervision. Especially in special periods such as holidays, different local governments will issue corresponding policies to carry out temporary price-intervention. If the hotel violates it, it may face administrative penalties such as fines or even suspension of business for rectification.

I hope the above content can help you. If in doubt, please consult a professional lawyer.

Legal basis:

Article 3 of People's Republic of China (PRC) Price Law

The state implements and gradually improves the mechanism that prices are mainly formed by the market under macro-control. The pricing should conform to the law of value. Most goods and services are subject to market-regulated prices, and very few goods and services are subject to government-guided prices or government pricing.

Market-regulated price refers to the price set by operators independently and formed through market competition.

The term "business operators" as mentioned in this Law refers to legal persons, other organizations and individuals engaged in producing and dealing in commodities or providing paid services.

Government-guided price refers to the price set by the competent pricing department of the government or other relevant departments in accordance with the provisions of this law, and the benchmark price and its floating range are set according to the pricing authority and scope to guide operators in setting prices.

Government pricing refers to the price set by the competent pricing department of the government or other relevant departments in accordance with the pricing authority and scope stipulated in this Law.

Article 20

The State Council price departments and other relevant departments shall, in accordance with the pricing authority and specific scope of application stipulated in the central pricing catalogue, formulate government-guided prices and government pricing; Government-guided prices and government pricing of important commodities and services shall be approved by the State Council in accordance with relevant regulations.

The price departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government and other relevant departments shall, in accordance with the pricing authority and specific scope of application stipulated in the local pricing catalogue, formulate government-guided prices and government pricing in their respective regions.

The people's governments of cities and counties may, under the authorization of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government, formulate the government-guided prices and government-set prices implemented in their respective regions in accordance with the pricing authority and specific scope of application stipulated in the local pricing catalogue.