In Reply to: Garden View Be Aware posted by maxie on Friday, 13. June 2008 at 03:33 Bali Time:
has to come into these numbers as well. Their price increase is not as steep as it first seems.
As an example we set our room prices at $35 per night when the Australian dollar was fetching 7,100, this equated to 250,000 rupiah per night.
The Australian dollar is now fetching 8,900. This means we have to look at "raising" our price to 310,00 rupiah per night just to stay at the $35 mark.
This may look like a 20% increase but in fact it is not an increase at all.
In our hotel we include the tax in the given price, so an increase is obvious. It seems the guys at Garden View have just taken the other option of leaving some prices the same and concealing he increase in the tax and service component.
This does not allow for inflation which is reported as running at 8.5% throughout Indonesia.