Olympic legacy? Nah, it’s discounts that pull in the punters
An online travel wholesaler has rubbished claims that London hotels are benefiting from an Olympic legacy, claiming instead that the rise in business this summer is down to discounting.
JacTravel said average prices for four- and five-star hotels from July 27 to August 12 (the period of the Games in 2012) were substantially down on the rates seen during the Olympics and even less than they were in 2011.
It said the average price of a room in a five-star hotel this summer was £124 per person per night, less than half the rate during London 2012. Even during 2011, the rate was 6% higher at £132.50pppn.
In the four-star category, the average rate this summer is £62.13 pppn, less than 60% of the asking price last year. In 2011, the average was £57.77pppn, which was lower than this year but when inflation is factored in, this year’s average price represents a slight reduction in real terms, said JacTravel.
Chief buyer for London Kasia Marciniak said: "Headline rates are not down, they’re up but the promotional deals in the wholesale market are so substantial that they are having an impact on the average prices we are seeing.
"Many hotels are offering 10-20% discounts over a whole stay, particularly where it includes traditionally quieter days, or they are bundling in additional bonus nights.
"What I’m hearing is that many hotels lost out on regular business due to the Olympics and they feel they need to do something special to attract major clients back. Nobody is saying there has been a boost in demand from staging the Games."
Nevertheless, bookings this July and August are massively up on 2012 and very substantially up on 2011, said JacTravel.
It said its booking were double what they were in 2011 and six times the level achieved in 2012.
President and chief commercial officer Mario Bodini said: "The rebound is beyond expectation. In my view, the key factor is that many hoteliers are showing great commercial nous."
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
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