DOT warns hotel middlemen

in ECQ opportunistic pricing

TAGBILARAN CITY, Bohol, April 16, (PIA)—The Department of Tourism (DOT) has sternly warned individuals and groups negotiating as middlemen, as well as accommodation establishments jacking up their room rates in these times of health emergency, they could be subjected to relevant penalties under applicable laws, rules and regulations.

Through Administrative Orders No 2020-001 A and B, the DOT has laid out the policies on the implementing rules governing the operation of hotels and other accommodation establishment during the period of Enhanced Community Quarantine.

The AO could be an offshoot of the reports the department has received from Hotel Sales and Marketing Association that third party individuals and groups have been approaching accommodation establishments to negotiate for mark-up rates intended for repatriated OFWs, stranded tourists and health front liners.

No less than Secretary Bernadette Romulo-Puyat confirmed this alleged marking up of room rates in another form of opportunistic pricing to cover for the commission.   

For the DOT AO, the secretary said hotels, resorts, apartment hotels, tourist inns, motels, pension houses, private homes used for homestay, ecolodges, serviced apartments, condotels, and bed and breakfast facilities who still continue to operate are mandated, being covered under the AO to implement lowest possible rates.

While the DOT has also abided by the rules under Enhanced Community Quarantine (ECQ) where non-essential business establishments would be given closure orders, accommodation facilities which service foreign guests with existing bookings or reservations in the Philippines as of 17 March 2020, or those who are in transit to leave the country, long staying guests, employees from neighboring basic establishments and distressed OFWs continue to operate on a skeletal staff and on limited operations.

By limited operations, accommodation establishments are only to provide basic accommodation services to guests, where room service is not be allowed, room refreshing is done only when necessary, an ancillary establishments like bars, cafes, restos not allowed to operate.

As to the DOT, Section 12 of the AO says covered accommodation establishment are strongly encouraged to provide the lowest possible rates to guests especially to repatriated OFWs and employees from basic establishments.

As the ECQ has pushed for self-quarantine protocols, and hospitals with frontline medical workers found it easier to “house” their working staff in accommodation establishments to reduce chances of contamination and pull them back for duty anytime necessary.

Over this and the fact that repatriated OFWs are supported by Overseas Workers Welfare Authority (OWWA), individuals and groups see this as a chance to earn easy money that the idea of sitting as middlemen for a commission surfaced.  

While this may put up an additional mark-up price for the rooms, some accommodation establishments agreed to connive with the middlemen who take on their marketing plans instead.

“The Department firmly denounces this practice as it strongly encourages accommodation establishments to offer their best rates possible,” Romulo-Puyat said. (rahchiu/PIA-7/Bohol)