London hotel prices set to double during Olympics

25 October 2010 by
London hotel prices set to double during Olympics

Hotel prices across London will more than double during the London 2012 Olympics, according to market intelligence company Rubicon.

However, while hoteliers can expect bumper profits during the course of the Games with demand for the city's 120,000 hotel rooms reaching a high, they could risk losing out in the long term with corporate business expected to plunge by up to 80% over the whole summer period.

Traditional package business from overseas visitors is also expected to fall over the summer with tour operators fearing they may be priced out of the market.

Rubicon has based its predictions on evidence gathered from Vancouver earlier this year, during the four months around the winter Olympic Games.

Rubicon managing director for Europe Andy Storey said the study shows that hotels should be mindful of losing the revenue they make during the Olympic Games. "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."

Meanwhile, Rubicon believes towns within an easy commute of central London could be the winners during the Olympics, with business travellers and tourists forced to head further afield to find reasonably priced hotel rooms.

Tourism sector must provide right welcome for London Olympics>>

Hotel rooms in London to grow by 12% by 2012>>

Hotels urged not to be greedy as Olympics bring in the crowds>>

By Janet Harmer

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