The inevitable is already taking place in the hospitality industry.

The much dreaded “price war” among hotels has just moved to the next level with the latest salvo launched by the Vouk Hotel Suite Penang in Georgetown.

Their new room vouchers are priced at RM75nett per room with no frills like breakfast or any other added meals included.

However, it is only valid for purchases made today and tomorrow (Nov 4 & 5)

The pre-paid vouchers (minimum purchase of three vouchers) are valid for three months while those who buy four or more vouchers can utilize them for six months.

While the price war may differ among the 3-star, 4-star , 5-star hotels or beach front and resorts bracket, overall, room rates have fallen drastically across the board.

Some of the hotels have even resorted to throwing in complimentary set lunch or dinner meals into the already reduced room rates package.

While the management team at hotels are undergoing pay cuts ranging from 10 to 40 per cent.

Several hotels have even resorted to close whole floors or even blocks to save on utility bills like electricity and water.

As one hotelier described the situation as “fighting for survival” and maintaining the livelihood of many families depending on the hospitality industry.

Meanwhile, another new strategy to market their hotel is taking to live Facebook shows to showcase their room rates jazzed up with gifts and freebies to draw viewers and potential customers.

Many of the marketing and communication team members are doubling up as emcees and show presenters on social media. (With many enjoying the limelight and attention)

No one knows what lies ahead for the industry as it all depends on the volatile and fluid world Covid-19 pandemic situation.

Where2 lifestyle reached out to the Malaysian Association of Hotels (Penang Chapter) chairman, Raj Kumar for his take.

“Frankly speaking, the hotels do not have any choice for the sake of survival and covering their overhead costs taking into account the welfare of the employees.

“All of these new promotions are temporary gimmicks not only limited to hotels in Penang but throughout the country.

“The aggressive promotions are aimed to draw customers to patronize the hotels for room stay vouchers or for food and beverage outlets.

“Everyone has to think out of the box to create ideas to promote their products. But I foresee things will get better for the industry by next year,” said Raj who is also the general manager of the 5- star Light Hotel.

Meanwhile, Malaysian Association of Hotels Kedah/Perlis Chapter, Eugene Dass added that the present situation is a matter of sustainability and minimising losses.

“Although many hoteliers will not admit that a price war is taking place, a price war is not encouraged as the whole industry and each and everyone involved in the industry will stand to lose further.

Dass is also the general manager of the StarCity and Fuller Hotel in Alor Star and the Fuller Hotel Kulim.