Room rates expected to rise in London as Olympics draw closer
A research study conducted by Hotels.com has revealed that large scale and international sporting events such as the Olympics trigger the rates of hotel rooms to increase by 30 percent in the first six months of the year in which they are scheduled to be
held. Therefore, the visitors that will be making their way to London for the London 2012 Olympic and Paralympic Games have been advised to make reservations before hand in order to avoid being hit by the high rates during the Games.
According to the report, room rates rose from 14 percent to a staggering 70 percent in New Zealand because of the Rugby World Cup that is currently taking place in the country. The typical price in Wellington rose by 29 percent while those in Auckland rose
by 11 percent.
Alison Couper from Hotels.com made the following statements about the matter: "Prestige sporting events are one of the key drivers of hotel prices and can lead to double-digit percentage increases, as many rugby fans are finding at the moment...It is expected
that several thousand additional hotel rooms will be available in the city in the run-up to the 2012 Olympics. However, despite the extra capacity, we would urge people thinking of coming to the capital next summer to book their accommodation as soon as they
can as the demand and prices are likely to soar the closer we get to the event.”
Even though it has been argued that the Olympic Games will be bringing in revenue and supporting the economic sector, the European Tour Operators Association has given the warning that they may have a negative effect on the financial health of the sector.
Despite the obstacles that the London 2012 Olympics faces the city is determined to pull off a great show next year. It will be the third time that the city of London will be hosting the Games, making London the first city in the world to have had the hosting
privileges thrice. The first one was hosted in 1908 while the second one in 1948.
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