June 2012
Featured in this insight: Consumer goods & FMCG , Sports & physical activity
Market research finds many tourists to avoid high hotel prices during Olympics: Internet hotel booking service JacTravel have conducted an online survey which shows that many tourists are actually put off by the upcoming Olympics – one-third of London hotel rooms remain unsold for the summer, which represents a 35% downturn compared to last year.
Hopes has been high that the Olympic Games would see a major boost to the economy, however the market research shows that a significant amount of tourists are instead choosing to avoid the congestion, increased security and higher prices that the event will usher in.
Hotels in London are currently facing a great loss in profits, however many analysts and industry experts say that they are out pricing themselves by raising their charges too steeply for the Games – while a four-star hotel room is usually priced between £80 and £120 a night in central London during the peak of the summer season, this year rooms are ranging between £200 and £415 per night.
Further surveys have confirmed this – a Hotel.com study recently showed that London hotel prices have risen 104%, with average rooms costing £213 over the summer. In addition, a UK Inbound survey found last week that nearly half of its members said their tourism bookings were slightly or considerably lower between May and August compared to the same period last year.
View more of our sector specific insights: Consumer goods & FMCG, Sports & physical activity
