Yeoh Siew Hoon sticks her neck out by suggesting her theory as to why Hong Kong hotels can get away with high rates while Singapore hotels struggle to raise prices.
I think I have finally solved one of the biggest mysteries of the hotel universe, which is "why are hotel rates in Hong Kong so high and Singapore rates so low?"
Ever since I started writing about the travel industry in Asia, this has been a puzzle that has long bugged hoteliers who have worked in both cities.
"I think it's because in Singapore, the government controls everything, including hotel supply. They don't want rates to go too high because they want Singapore to remain a cheap place for visitors."
"I think it's because in Hong Kong, the owners are very aggressive and are always pushing for higher rates."
"I think it's because Hong Kong is more exciting than Singapore. There is more demand."
"I think it's because Hong Kong hoteliers are more united than Singapore hoteliers."
"I think it's because sales people in Hong Kong are more aggressive than those in Singapore."
These are some of the theories I have heard over the years. They probably all contain a grain of truth but to me, the real answer lies in the mindset of the place.
You see, in Hong Kong, it's a case of the more expensive, the better while in Singapore, it is the cheaper, the better.
In Hong Kong, if you compliment a woman on her dress, she'd tell you it's the latest design from a swanky boutique and boast about the high price she paid. In Singapore, she would say proudly, "Oh, this. You know how much I paid for it? $20. So cheap."
I remember a hotelier friend once telling me over dinner at Petrus, the French restaurant at the top of the Island Shangri-La where the prices are as high as the views, "If you open a restaurant in Hong Kong, price it high. People will think it's good. If you are too cheap, people will think you are not good enough."
In Singapore, the most common comment about new restaurants is, "It's good but hey, it's not cheap."
A travel industry colleague, who has recently moved after 10 years in Singapore to Hong Kong, was sharing his experiences with me.
"In Hong Kong, when you quote for a job, the first thing they ask you about is not the price but your track record and whether you can deliver the goods. In Singapore, the first thing they address is the price and whether you can be cheaper."
My theory therefore is that hotel sales people in Singapore, having grown up themselves with this price mentality, lack the courage of their convictions to price their products accordingly. After all, if they are used to asking for cheaper rates all the time from people they buy from, how can they sell something they think is expensive to someone else?
In Hong Kong, on the other hand, people have no fear asking for what they believe is the right price for their product.
I know. I am probably sticking my neck out here with this theory and of course, there are many other conditions that impact on pricing but I believe this lies at the heart of the hotel industry's biggest mystery – why Hong Kong hotels can get away with US$300 rates (and even higher) and Singapore hotels are orgasmic when they can achieve S$300 on one night of the year?
I suppose this theory can only be proven if we swapped entire sales teams between a similar quality hotel in Singapore and Hong Kong.
Any takers?
The SHY Report
A regular column on news, trends and issues in the hospitality industry by one of Asia's most respected travel editors and commentators, Yeoh Siew Hoon.
Siew Hoon, who has covered the tourism industry in Asia/Pacific for the past 20 years, runs SHY Ventures Pte Ltd. Her company's mission is "Content, Communication, Connection". She is a writer, speaker, facilitator, trainer and events producer. She is also an author, having published "Around Asia In 1 Hr: Tales of Condoms, Chillies & Curries". Her motto is ‘free to do, and be'. Contacts: Tel: 65-63424934, Mobile: 65-96801460Check out Siew Hoon's new website, www.shy-connection.com, which features a newly-launched e-zine with a difference. 
