Saturday, February 20, 2010

Paying Above the Odds

As we all prepare for the World Cup in South Africa, not surprisingly those in attendance will be looking at paying well above the odds. Drats!

England fans who go to the World Cup in South Africa could be forced to pay a 30 per cent surcharge for hotel rooms.

Supporters who book accommodation with a FIFA backed agency will be charged commission - an average £12 per night - on top of the room price.

Match Event Services, part-owned by a British firm based in Manchester, is expected to blockbook 55,000 hotel rooms for the tournament next June. That is more than 80 per cent of South Africa's available rooms, so fans will have little choice but to pay hiked prices - sparking fury from politicians, supporters' groups and travel agents.

The commission added to the standard hotel rates is likely to bump up the cost of a night in an average hotel by £12, from £38 to £50. It is thought England's army of 20,000 fans - the biggest following of any country - will attend for an average 10 nights each.

Liberal Democrat shadow culture, media and sport secretary Don Foster said: "A mark-up of 30 per cent is huge. It can't possibly be right.Fans have to rely on agents with block bookings as they have the contracts but they will feel ripped off and rightly so."

Football Supporters' Federation's Director of International Affairs Kevin Miles said: "For FIFA's own accommodation agency to take an extra 30 per cent of costs is quite simply ripping off fans."

A fifa spokesman said: "It is standard industry practice for hotels to be subject to commissions for an agent." He said Match Event Services - which paid FIFA £60million for the exclusive rights to provide corporate hospitality at the tournament - was run on a break-even basis.

A Match Event Services spokesman said the margins were "not unusual" and cash made would pay other costs for staging the tournament.

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