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Updated at 10:40 pm on 8 May 2010
The Hotel Council says accommodation providers realise they run the risk of driving guests away if they overcharge during the Rugby World Cup next year.
Minister for the World Cup, Murray McCully, has written to the council telling them that overcharging will damage the country's reputation.
The chair of the council, Jennie Langley, says hotels will be charging premium rates, but they don't want to drive guests away with over-the-top pricing.
She says the last thing hotels want is empty rooms and unhappy guests.
The Hotel Council says accommodation providers won't be doing themselves any favours if they charge exorbitant prices during the Rugby World Cup.
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