Hotel prices ‘will double during Olympics’
Hotel prices across the capital will more than double during the London Olympic Games, but business during the summer of 2012 will plunge by up to 80%, according to market intelligence company Rubicon.
Rubicon said the bumper profits made during the tournament would be eroded by a drop in corporate business for the rest of the summer.
Traditional package business from overseas visitors is also expected to fall off over the summer with tour operators fearing they may be priced out of the market.
Even the head of VisitBritain seemed to acknowledge this week that fewer tourists would come to the UK as a result of London hosting the Games. Speaking at the ABTA Travel Convention, chief executive Chris Rodrigues said a drop in inbound tourism was inevitable.
Rubicon managing director for Europe, Andy Storey, said: “Our study clearly shows how hotels should be mindful of losing the revenue they make during the Olympics.
"Generally hotel owners fail to put enough attention on the shoulder seasons either side of sporting events, and this is what causes them to do worse than in ‘normal’ years.
"It is no surprise that hotels will be busy during the event itself, but London properties should heed warnings and set pricing and market accordingly. "
Rubicon – which analyses historical price and demand trends along with forward-booking data – based its predictions on evidence gathered from Vancouver earlier this year, during the four months around the Winter Olympic Games.
“By recognising past trends, London hotels can now look to manage their pricing effectively throughout the Olympic summer of 2012, enabling them to compete more effectively with their competition and draw in both tourist business and corporate travelers," added Storey.
"Business traffic often drops off significantly either side of these landmark events and hotels must be wary of overpricing in these periods.”
Towns within an easy commute to central London could benefit from the Olympics, however, as business travellers and tourists look for reasonably priced rooms outside the capital.
Demand for London’s 120,000 hotel rooms is expected to hit unprecedented highs during the tournament, with hotel stocks are already under pressure. Olympics organising committee LOCOG has first call on 50,000 rooms for officials, dignitaries and the expected 22,500 worldwide media expected to attend.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026