Why are May Day hotels so expensive?

The reasons why May Day hotel prices are expensive include price adjustments during peak seasons, rising costs, demand exceeding supply, marketing strategies, and superior geographical location.

1. Peak season price adjustment

The May Day Golden Week is the peak period for domestic tourism. The number of tourists increases significantly, so hotels usually increase prices. This is because hotels need to set their prices based on supply and demand to take advantage of market demand. If hotels do not increase prices, they cannot fully tap the market potential and cannot cope with limited supply.

2. Rising costs

During the May Day Golden Week, hotel room, catering, personnel and other costs will increase. The room cost is because the hotel needs to use more expensive bedding, towels, toiletries, etc., while the catering cost is because the hotel needs to prepare more rich breakfasts, dinners and lunches to serve tourists. In addition, hotels need to increase the number of staff to cope with more guest demand, so staff costs will also rise.

3. Demand exceeds supply

Since the May Day Golden Week is the peak period for domestic tourism, hotel supply is limited and it is difficult to meet the needs of all tourists, so hotel prices have risen. Since hotels have limited capacity, supply shortages are inevitable, so tourists need to book hotels in advance to get better prices.

4. Marketing strategy

In order to attract more tourists, some hotels adopted specific marketing strategies and publicity methods during the May Day Golden Week. This requires a lot of expense and effort, such as hotels investing in advertising and offering special offers to attract tourists. These costs need to be spread into the price of the hotel, so the price will increase accordingly.

5. Superior geographical location

The special geographical location of some hotels makes their prices higher. For example, during the May Day Golden Week, hotels located near tourist hotspots are easily favored by tourists due to their geographical location, and therefore the hotel prices are relatively high. Hotels can take advantage of this location and raise prices to achieve higher profits.