With the Olympic Games less than 4 months away, serviced apartment prices in London are falling, as are minimum length-of-stay requirements. Following initial projections that the capital would be brought to breaking-point, as sports fans added to the customary summer traffic, it seems some have decided to stay away…
With the Olympic Games less than 4 months away, serviced apartment prices in London are falling, as are minimum length-of-stay requirements. Following initial projections that the capital would be brought to breaking-point, as sports fans added to the customary summer traffic, it seems some have decided to stay away.
“It is not just the higher prices which have discouraged holiday business this year”, says Roy McKenzie, founder of central London booking specialist, London Serviced Apartments Ltd. (LSA). “There are also concerns regarding inconvenience and discomfort, which will often not materialise.”
The fact remains that serviced apartment providers for the London Olympic Games have reduced rates significantly since the beginning of the year. But the market forces at play are currently completely different from other years and it has been impossible forecast overall demand. So rates started high – perhaps too high?
Roy McKenzie, of LSA: “Rates are currently falling. Some properties decided to fix prices or add a modest 20% premium, in order to retain their regular clients. These properties are now full.”
But properties initially requesting rates of up to 100% above their usual high-season rates, still have space, and are reducing prices as The Games approaches.
“It’s a gamble”, continues McKenzie. “If there is still surplus accommodation, rates will continue to fall. But once the city reaches capacity, they will rise again. It could just be the quiet before the storm?”
London Serviced Apartments Ltd was founded by former corporate lawyer, Roy McKenzie in 2000 with the aim of providing the best service in an embryonic London serviced apartments market.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
