When the welcome is frosty

If holidaymakers get a cool reception in some holiday destinations it may have more to do with the practices of some tour operators in the UK than with the hospitality of the local hoteliers.

Many hotel owners and local agents feel badly treated by British tour operators. Some of them have lost a small fortune when unsecured trade creditors have gone bust.

They feel especially bitter when an ailing competitor is taken over: the new owners may continue to do business under the same brand name, and yet are under no legal obligation to settle any outstanding debts. As a result, hoteliers may be out of pocket when a tour operator ceases trading, even though the same company, now under new ownership, is sending its customers to the same destinations. So it comes as no surprise if hoteliers accuse tour operators of sharp practice. For example, allegations have been made that tour operators use the position to force down the rates which hotel rooms were originally contracted. Sales may be booming but the tour operators will tell the hotelier that business is sluggish and that the rooms can only be filled if they discount their prices.

Another tactic is to claim that competitors are holding down their prices and that the only way to remain in business is to do likewise. The hotelier can do nothing to prove the contrary.

Hoteliers also suffer from cash flow problems through delays in payment. Although most settle up within a couple of months, some operators have been known to request a fresh allocation of bed-nights when they still have not paid for the previous season.

So if you’re going on a package don’t be surprised if the welcome you receive is less than enthusiastic - the chances arc that the room was contracted at a rate that will barely cover overheads. But you would still be in a better position compared to some unfortunate holiday makers in Spain. One British operator had forced a reluctant hotelier to accept a greatly reduced rate with the result that when the tourists arrived their rooms had been re-allocated to a foreign operator offering a better deal.

Answer the questions.

1. To what extent can a hotelier trust a tour operator?

2. How do tour operators attempt to persuade hoteliers to take less money?

3. How did the hotelier in Spain react?

Task 6. Sum up both articles and speak about the things you have learned from the stories. Comment on the following issues.

1. What do you think a foreign tour operator wants from a hotelier?

2. What do you think a local hotelier wants from a foreign tour operator?

3. Who is in a better position to negotiate?

4. What problems do you think there might be?