Exclusive hotels are going out of business?

[John.St]

Some hard facts about hotel prices - in my bookmarks file I keep tab on hotels all over Argentina, which I either use, have used or have considered using:

Prices for single room:
Mendoza - Hotel San Martin*** - ARP 185 (2009.07 + 2009.02 + 2008.11) 165 (2008.07)
Mendoza - Hotel Puerta del Sol*** - 155-170 (2009.02) 140-180 (2008.12)
Mendoza - Alcor Hotel*** - ARP 160 (2009.02 +2008.11) 139 (2008.04) 118 (2007.04)
Mendoza - Hotel Niventus*** - ARP 200 (2009.02) 185 (2008.11 + 2008.07) 150 (2008.04) 125 (2007.04)
Mendoza - Hotel Argentino*** - 228(2009.07) 190 (2008.05)

Buenos Aires - Esmeralda Palace ARP 172 (2008.04) 150 (2007 juni) 198 (2008.07)
Córdoba - Hotel Viña de Italia 100 (2008.04) ARP 55 (2006)
Córdoba - Hotel Damar ARP 65 (2008.07) 40 (2006.11)
Necochea - Las Vegas Hotel ARP 132 (2008.04) 80 (2006.09)
Paraná - Hotel Paraná Plaza Jardín ARP 115(STD) (2008.07) 100(STD) (2008.04) - 68(STD) (2007.04)
Posadas - Hotel Continental ARP 124 (2008.04) 86 (2007)
Posadas - Hotel Libertador ARP 102 (2008.04) 76 (2006)
Resistencia - Hotel Covadonga ARP 153 (2008.07) 120 (2008.04) 90 (2007.03)
Rosario - Estación Callao Hotel*** ARP 90 (2008.07) 60 (2007)
Salta - Hotel Mar Charbel AR$ 90 (2008.11) 80 (2008.07) 70 (2007)
Salta - Hotel Refugio del Inca Salta Argentina ARP 119 (2008.12) 99 (2008.04) 80 (2007)
Salta - Hotel Del Antiguo Convento Salta Argentina ARP 189 (2008.12) 154 (2008.04) 115 (2007)
Salta - Hotel Marilian Salta Argentina ARP 190 (2008.12) 125 (2007)
Salta - Hotel Aldaba Salta Argentina ARP 139 (2008.07) 121 (2008.04) 95 (2007)
Santa Fe - Hostal Santa Fe de la Vera Cruz ARP 120 (2007.08) 100 (2007.04)
Tandil - Plaza Hotel de Tandil - ARP baja 145 (210 fin de semana solo) 240 alta (2008.12) 99/155 baja 175 alta (2007)
Tucumán - Hotel Mediterráneo ARP 135 (2008.04) 90 (2007)
Tucumán - Hotel Dallas ARP 90 (2008.04) 75 (2006)

 

[John.St]

I ran the above hotel prices through my analyzer.

Raw changes:
18 months: +31%
30 months: +43%

Removing extreme outliers (e.g. -2%, + 8% or +88%)
18 months: +26%
30 months: +39%

 

[soulskier]

Where do I get an analyzer?

 

[RWS]

Where do I get an analyzer?

Wasn't one issued you at birth?

 

[redrum]

This is what I so far have not been able to understand: No business, no sales, no occupancy and no one drops the price.

Also, I don't understand what is driving the inflation? Can some on explain this to me? If you bought something to sell a year ago, why are you bring the price UP today? If you haven't sold it in a year, I would think you would bring down the price?

mini.....

what is causing the inflation?

well, i'm not an expert, but then again neither are most economists however......

if you follow the Austrian school of economics http://mises.org/ which both Ron Paul and Peter Schiff are educated in - you'll learn that inflation is purely a matter of Money Supply. the more physical money that is created, digitally or printed into circulation, equals more money chasing the same amount of goods, thus prices increase. you can have other things affect prices such as shortages, increasing manufacturing costs...etc but we're just talking about general terms here.

Inflation is a hidden tax. It's a dirty way for governments to steal the purchasing power of your money without you ever noticing until much later.

If money is not pegged to something i.e. gold/silver, then governments are free to print any amount they want to fund their over spending and budget deficits. If money was pegged to gold, the government would first need to acquire more gold before printing more paper money. They can't just print up a bunch of gold.

Now - and this is important - Argentina pegs its peso to the US dollar. Therefore, if the US dollar becomes inflated, as it is currently being printed out of thin air by the Federal Reserve - that means that Argentina, as well as any other country pegged to the dollar, must also inflate their currency if they want to maintain their exchange rates of 3 to 1, 4 to 1...etc. As the dollar base increases, so must other foreign currencies who are pegged to it.

Pegging plays an important role if a country is a big exporter - like china was/is. Remember how the US kept trying to get them to increase the value of the yuan in order to make US exports more competitive and reduce the trade deficit? china maintained the yuan low against the dollar to make their exports cheaper.

Anyway, point is - as the dollar becomes debased, other currencies follow suit. These are the dangers when the world's reserve currency begins to unravel as we are seeing right now.

If you are really interested in money, our debt based money supply, how it is created, fractional reserve banking, why assets should not be overly leveraged in dollars then watch Money as Debt. It's a great educational video, only 47 min:

http://video.google.com/videoplay?d...419&ei=47otSsixOIO0rgK80fSxCg&q=money+as+debt

once you learn that paper money is worthless and only backed by the word of an inept government, you'll want to own some precious metals i.e. gold/silver bullion as a hedge. properties and other commodities as good as well.

 

[BlahBlah]

If the economy crashes only houses, goods, food and guns will be of value

 

[Celia]

If the economy crashes only houses, goods, food and guns will be of value

...I'm too polite to mention the last...

 

[mini]

mini.....

what is causing the inflation?

well, i'm not an expert, but then again neither are most economists however......

if you follow the Austrian school of economics http://mises.org/ which both Ron Paul and Peter Schiff are educated in - you'll learn that inflation is purely a matter of Money Supply. the more physical money that is created, digitally or printed into circulation, equals more money chasing the same amount of goods, thus prices increase. you can have other things affect prices such as shortages, increasing manufacturing costs...etc but we're just talking about general terms here.

Inflation is a hidden tax. It's a dirty way for governments to steal the purchasing power of your money without you ever noticing until much later.

If money is not pegged to something i.e. gold/silver, then governments are free to print any amount they want to fund their over spending and budget deficits. If money was pegged to gold, the government would first need to acquire more gold before printing more paper money. They can't just print up a bunch of gold.

Now - and this is important - Argentina pegs its peso to the US dollar. Therefore, if the US dollar becomes inflated, as it is currently being printed out of thin air by the Federal Reserve - that means that Argentina, as well as any other country pegged to the dollar, must also inflate their currency if they want to maintain their exchange rates of 3 to 1, 4 to 1...etc. As the dollar base increases, so must other foreign currencies who are pegged to it.

Pegging plays an important role if a country is a big exporter - like china was/is. Remember how the US kept trying to get them to increase the value of the yuan in order to make US exports more competitive and reduce the trade deficit? china maintained the yuan low against the dollar to make their exports cheaper.

Anyway, point is - as the dollar becomes debased, other currencies follow suit. These are the dangers when the world's reserve currency begins to unravel as we are seeing right now.

If you are really interested in money, our debt based money supply, how it is created, fractional reserve banking, why assets should not be overly leveraged in dollars then watch Money as Debt. It's a great educational video, only 47 min:

http://video.google.com/videoplay?d...419&ei=47otSsixOIO0rgK80fSxCg&q=money+as+debt

once you learn that paper money is worthless and only backed by the word of an inept government, you'll want to own some precious metals i.e. gold/silver bullion as a hedge. properties and other commodities as good as well.

Thanks for that but I do know how inflation works in theory as you basically have pointed out (in theory). What I want to know why inflation is happening here in Argentina now & in the last few years. If the peso is pegged to the US$ they why is it keep falling against it?

Also, I don't understand why things that have already been purchased keep going up? Why do used goods continue to raise in price even though there are more & more goods on the market?

Sure, I can understand SOME things going up. Things that are imported NOW with a lower peso value or things made with components ingredients, whatever bought NOW at the lower peso rate. Those things that are imported or made with stuff that has been imported.

My question is more about this idea that some item that has been in your shop for the last 3 years (or more), unsold, should keep going up in price? No one wanted it at the original high price. Why would they want it at the even higher price?

Also, inflation in Argentina has been at 30% longer than the US has been doing it's "economic recovery plan". So I don't necessarily buy that connection.

 

[soulskier]

Thanks for that but I do know how inflation works in theory as you basically have pointed out (in theory). What I want to know why inflation is happening here in Argentina now & in the last few years. If the peso is pegged to the US$ they why is it keep falling against it?

Also, I don't understand why things that have already been purchased keep going up? Why do used goods continue to raise in price even though there are more & more goods on the market?

Sure, I can understand SOME things going up. Things that are imported NOW with a lower peso value or things made with components ingredients, whatever bought NOW at the lower peso rate. Those things that are imported or made with stuff that has been imported.

My question is more about this idea that some item that has been in your shop for the last 3 years (or more), unsold, should keep going up in price? No one wanted it at the original high price. Why would they want it at the even higher price?

Also, inflation in Argentina has been at 30% longer than the US has been doing it's "economic recovery plan". So I don't necessarily buy that connection.

Here in Bariloche, I regularly see properties sales prices increased after being on the market for some time. This one lakefront property went from 250K to 280K to 320K and then sold (not sure for how much).

Logic doesn't exist in Argentina as best I can tell.

 

[BlahBlah]

Here in Bariloche, I regularly see properties sales prices increased after being on the market for some time. This one lakefront property went from 250K to 280K to 320K and then sold (not sure for how much).

Logic doesn't exist in Argentina as best I can tell.

So they still sold it, seems rewarding to increase the asking price