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AHA condemns price rise in global rewards scheme



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A U S T R A L I A N H O T E L S A S S O C I A T I O N

24 Brisbane Avenue Barton ACT 2600 · PO Box 4286 Manuka ACT 2603 · Australia email: theaha@ozemail.com.au · Facsimile: (02) 6273 4011 · Telephone (02) 6273 4007

Richard J Mulcahy National Executive Director

MEDIA RELEASE

4 August 1999

AHA Condemns Price Rise In Global R a w a i t L q S r h A r r iA

The Australian Hotels Association today condemned steps taken by Ansett airlines to significantly increase its fees and charges for hotels participating in its Global Rewards Scheme.

Ansett has indicated that hotels contributions for participating hotels are to increase from the current 3% to 7% of the total bill by July 2000.

"This increase represents a 133% hike within a little more than a year," Mr Richard Mulcahy, National Executive Director of the Australian Hotels Association said.

"This represents an incredible impost on hotel operators, and would result in their payments to Ansett Global Rewards escalating dramatically.

"The AHA anticipates that some hotels will contemplate ceasing their membership of the Global Rewards programme, and instead consider other reward and marketing schemes. Of course, each hotel will make its own decision whether to

continue membership of Ansett's reward programme," Mr Mulcahy said.

The price hike comes on top of Ansett's imposition of a $5 fee per booking through the Ansett Concierge Booking System.

"Although each hotel will make its own response to Ansett's fee increase, there is now great incentive for hotels to pursue less costly and burdensome alternatives", said Mr Mulcahy.

Media Inquiries: Mr Daniel Leesong, Public Affairs Manager: Ph 02 6273 4007, 0417 253 753.

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