A Christchurch hotel is charging $2400 a night for rooms during the World Cup quarter-finals - about 14 times the usual rate.
The figure is in a quote sent from the Novotel Hotel in Cathedral Square to a tour organiser, who said he was stunned by it.
The man, who asked not to be named because he feared it would affect his business with the hospitality industry, said he was too embarrassed to tell his clients hotels were charging so much.
He initially thought the staff member had made a mistake and called to tell her, but was informed of the "dead right embarrassing" rates.
The mark-up has also outraged international rugby writer Peter Bills, who in July called New Zealand "one giant rip-off".
Bills said yesterday that everyone expected some mark-ups but increases to such an extreme were very disappointing.
"It almost takes your breath away, the arrogance of it. It's just downright robbery.
"New Zealand's crazy to do it. I think it's going to get a shocking reputation around the world.
"The most disappointing thing is it's going to give the country an awful name."
Novotel Christchurch general manager Roberts Ejubs said prices for rooms always varied.
"Hotel rooms are just like every other commodity," he said.
"The price is determined by supply and demand. Clearly people expect to pay more at times of high demand.
"Another example of a product doing this are tickets for the Rugby World Cup event itself.
"As an example, some pool game tickets are as low as $30, yet finals and quarter finals are more than $1300."
Mr Ejubs said a room at the hotel for last night would have cost $169, but November was a fairly quiet time, so prices were cheaper.
Auckland's City Life and Heritage Hotels are also fully booked for the semi-finals and finals.
But standard rooms at Auckland's Heritage Hotel during the semifinals and finals are also being charged out at $634 to $736 a night.
This is up from $190 in the quiet winter season and $290 last month.
CityLife's rates for the same period began at $603 to $705 a night - up from the quiet season rate of $180 and $270 last month.
Hospitality Association chief executive Bruce Robertson said it was important to keep prices in perspective.
"There's a market demand operating here. For most of the time over the Rugby World Cup, rates will be pretty much as normal apart from the quarters, semis and finals.
"I think they [prices] certainly will be up there with the highest we've attracted but it needs to be put into context - people think these high rates are being charged for the whole six weeks that the Cup's on and that's not the case.
"Even if somebody was, say, paying $2000 for a night for the quarter final, that won't be the average rate that they'll pay for the duration of their stay in New Zealand.
"People will be able to get cheaper rooms if they're prepared to travel more. There will be cheaper options available."
Rugby rates
* $2400 a night at Novotel Hotel, Christchurch
* $170 usual rate
* $634-$736 a night at Heritage Hotel, Auckland
* $290 usual October rate
* $603-$705 at CityLife, Auckland
* $270 usual in October
$2400 a night - Cup hotel puts the boot in
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