Guests trading down during Olympics

Overnight stay costs in London have risen considerably during the Olympic Games, with many hotel guests now selecting hotels in a lower star category to save money.

Hotel prices across the board have increased by approximately 30% in comparison with the same period last year and are up by 6.45% compared to June 2012.

Whilst reservations in the higher categories are lower than in the same period last year hotel.info has identified a marked rise in the number of bookings made in 2 and 3 star hotels.

Although hotel rooms in the 4 star category appear to be less sought after during the Olympics compared with the same period last year, the average overnight cost has still increased. According to current booking figures, prices have jumped by 20% from £162.50 to £197.34 per room per night.

Within the 3 star category, rooms are now almost 40% more expensive, averaging £142.83 per night during the Games. In the 2 star category, overnight costs have risen on average by 52.59% from £63.38 to £96.72.

The Olympics seem to also be influencing the visitor structure in London. In the same period last year, rooms were booked for an average of 2.8 nights. Now, the free booking platform provided by hotel.info has recorded an average stay of 6.5 nights during the Games, demonstrating that fewer short breaks are being booked in London during this period as visitors aim to beat the crowds.

However, in spite of the higher prices, the Olympics do offer an excellent opportunity for London hotels to impress their guests. Up to now, London has frequently been at the lower end of customer satisfaction ratings in both national and international surveys.

Research published by hotel.info in June 2012 revealed that the Capital doesn’t even get close to a podium place compared to other UK cities, including Liverpool and Sheffield. The Capital finished tenth in a customer satisfaction survey of over 10,000 business and leisure travellers, with an average score of 6.58.

Andreas Klug, Country Manager for the UK for hotel.info said: “There are still rooms available, even for the remaining Olympic weekend, many of which are at considerably lower prices than the average rates.

“There are also 3 and 4 star hotels featured hotel.info that have considerably reduced their rates as many of the room allocations have not been taken up yet. All in all, there is still hope for a last minute traveller to be able to make an affordable trip to the Capital over the next 10 days.”