Hotel insiders fear hotel rates could rise in London by as much as 50 per cent in 2012 due to the Olympics, following a study which showed how sporting events ramp up local hotel rates.
The latest Hotels.com Hotel Price Index (HPI) showed how British rugby fans travelling to the World Cup paid 29 per cent more on average for hotels in Wellington at £73, and 11 per cent more in Auckland at £68. The overall rate in New Zealand itself also rose 14 per cent to £70 per night.
Similarly, the report also showed Formula One Grand Prix racing can impact pricing and occupancy rates in venue cities with the sport being one of the factors behind a 22 per cent jump in Melbourne to £96 and a 5 per cent rise in Barcelona to £102. During Wimbledon tennis, the price of a room in London rose by 3 per cent to £113 with the city at full occupancy.
In contrast, following a major sporting event, prices can fall dramatically – following the World Cup in South Africa in 2010, the country saw its average room rate drop by 17 per cent in the first six months of this year to £105 with host cities Cape Town down 20 per cent to £100 and Johannesburg down 13 per cent to £111.
Looking ahead to next summer’s Olympics, insiders are predicting rates could jump as high as 50 per cent. Alison Couper of Hotels.com said: “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.
“What is happening in New Zealand and what happened in South Africa could provide a foretaste for what might occur in London next year.
“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.”