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High bed capacities curb price increases says HRS

Pricing indicates hotels are wooing business travellers back to London

Last-minute corporate and leisure travellers are set to benefit from falling prices and a wide range of hotels over the Olympic period, says HRS, Europe’s leading hotel booking portal. Major events often trigger a drastic increase in demand for hotels in the host city which in turn usually results in significantly more expensive room rates. However, visitors to London during the…

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Last-minute corporate and leisure travellers are set to benefit from falling prices and a wide range of hotels over the Olympic period, says HRS, Europe’s leading hotel booking portal.

Major events often trigger a drastic increase in demand for hotels in the host city which in turn usually results in significantly more expensive room rates. However, visitors to London during the Summer Olympics from 27 July to 12 August 2012 can look forward to moderate increases in room rates – just 24.7 per cent higher than the average rate in comparison to rates increasing by up to 181 per cent in Euro 2012 host cities, claims HRS following booking analysis for the Olympic city to date.

Just two weeks before the start of the 17-day sports spectacle, there are still numerous vacancies in London and last-minute visitors are currently benefiting from slight reductions in room rates. "The closer we get to the Olympic Games, the more hotels are contacting HRS with vacancies", says HRS CEO Tobias Ragge. "Many hotels originally tried to offer their room quotas during the Olympics at many times the normal rate, but with the start of the Games just two weeks away, there are still numerous vacancies and many hotels are now lowering their room rates", explains Ragge. HRS believes this price trend is due to the large stock of hotel beds in London, which has also significantly expanded following numerous new openings in the run-up to the Games. This is compounded by a reluctance among some Europeans to travel due to challenging economic conditions in their home countries.

Post Games price drop for corporate travellers
HRS is predicting a bookings hike post Games, particularly amongst business travellers as hotels across London are dropping their prices significantly in the aftermath of the Olympics, with rates pitched to attract business travellers back to the Capital.

HRS data, gathered from over 800 hotels in its London portfolio, shows that average room rates during the Games are £159.29. From 13-28 August this drops significantly to £95.01, which is also slightly lower than the same period last year when average room rates were higher at £98.42.

“We have long predicted, along with the rest of the industry, that hotels across London hike prices in order to make the most of the events this summer,” comments Jon West, Managing Director UK & Ireland, HRS.  “However, the dramatic drop in room rates immediately after the closing ceremony is an interesting development and one which we believe is targeted directly at business travellers.

“It is no secret that businesses are being encouraged to stay away from London during the Games in order to facilitate the movement of visitors and ticket holders in and around the Capital as much as possible.   Many businesses, and the City of London and the Docklands area in particular, are being affected by this, and having to devise contingency work plans throughout much of July and August. 

“It is therefore unsurprising to see hotels price themselves so competitively, encouraging business travellers back into the city ‘between the Games’”.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

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

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