Recent attempts by Olympic officials to downplay the cost of hotel rooms during the Beijing Games have caused a stir among interested readers.

One of the Olympic designated hotels in one of the co-host cities Qinhuangdao, Hebei Province. [China Daily]

Although some local media claimed earlier that hotels in Beijing were planning to charge non-official visitors eight to 10 times their usual rates, organizers have indicated that the rates will likely drop. They have also dismissed the proposed price hikes as marketing gimmicks for proprietors to test the market.

Meanwhile, organizers are saying that the rates for the "Olympic Family" will actually be lower than previously quoted. The market will decide the prices for those guests not affiliated to the Olympic Family, they say.

Sounds great -- but not everyone is convinced.

"It's nice that the Olympic committee and other VIPs get room rates guaranteed at reasonable prices, but what about regular people?" one reader asked in an email to China Daily, citing a friend's experience of being quoted 2,000 yuan a night during the Games for a room that normally goes for only 200 yuan.

The situation can be blamed on customers' lack of information about market prices and product quality.

People are nervous because they don't know much about the local market and they suspect hotels will be over-priced. Even competitive markets can fail if consumers do not have accurate information. Just think how many times in your life you have regretted not having known better after being taken for a ride!.

At the moment, property agents for flats around the Olympic venues have also joined the fray by predicting drastic increases in rent during the Games. They expect most private flats to be snatched up in May and June after customers finish their enquiries and bargaining.

According to them, a three-bedroom flat close to the National Stadium, or Bird's Nest, may fetch a monthly rent of 50,000-100,000 yuan, up from the present 5,000-8,000 yuan. To fully exploit this "Olympic bonanza," some owners even plan to temporarily vacate their houses before next summer.

Of course, visitors can try to reduce the problem of "asymmetric information"(not being properly informed) by spending more time on searching for bargains, which also means longer waiting time, for property owners.

This may explain why BOCOG officials say that "reasonable deals are still available if buyers haggle," and "very few" hotels have actually signed contracts with clients so far.

However, the onus should not be entirely placed on the customer. To make the market more efficient, the government can also help by increasing information transparency. The Beijing tourism administrators are said to be planning to post all qualified local hotels on their official website, which may help travelers decide which hotel to choose when they book online.

In the residential property market, the local consumers' association could provide monthly median rents for different types of flats in areas near Olympic venues to help everybody make informed decisions when they sublet or rent. The association has worked with a local real-estate brokering company to produce a guidebook on house letting in Chinese, English, Korean and Japanese, but only with sketchy information about residential areas.

Organizers can also help alleviate customers' concerns by recommending more hotel or housing brokers that already have a good reputation for providing competitive prices and services. If prospective buyers know which websites, hotels and agents are trustworthy, it will trim their searching costs and save much heartache in the long run.

I do not doubt that every international visitor will be able to find a bed when they come to Beijing next summer - even the worst-case scenario will have them staying at star-rated hotels in a neighboring province, but still within a 100km radius of the capital.

The major concern seems to be: at what cost?