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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. 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.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
