Homestay company fined for price gouging during torch festival

A homestay company in Xichang, Sichuan province, has been fined 500,000 yuan ($69,700) for hiking prices during the Torch Festival.

The investigation found that the company, Shengheng Homestay Management Co, had fabricated false information and manipulated prices in order to take advantage of the high demand for accommodation during the festival.

The company's online booking prices for its accommodations increased significantly during the festival, exceeding 2 to 3 times the normal rates. The highest price for one night's stay at the "Qingsu Huajian" homestay reached a staggering 2,576 yuan, almost a tenfold increase from prices in normal days.

The Xichang Administration for Market Regulation said that it will adopt a high-pressure approach to crack down on any price violations, ensuring a stable pricing market throughout the city.

The Torch Festival is a traditional event of the Yi and other ethnic groups in the prefecture, which falls on June 24 on the lunar calendar, or Aug 10 this year. The festival is celebrated with rich and exciting activities, such as horse racing, bull fighting, wresting, folk singing and dancing, beauty contests, gourmet festivals, and torch parades.

The prefecture will have a public holiday from Aug 10 to 16.

The fine imposed on the homestay company is a clear warning to other businesses that they will be held accountable for price gouging during peak travel periods. The authorities' tough stance on price violations is in line with the government's efforts to protect consumers and ensure a fair and transparent pricing market.

The investigation into the homestay company is part of a broader crackdown on price gouging in Xichang.

The authorities have said that they will continue to monitor prices and take action against any businesses that are found to be engaging in price gouging. They have also urged consumers to report any suspected cases of price gouging to the authorities.