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381146_406103579448683_57624143_n

Print 🖨 PDF 📄 eBook 📱The United Kingdom government may declare the 2012 London Olympic Games a success, but the same simply can’t be said about London hoteliers. The “Olympic effect” as billed by many continues to hurt London hotels, according to the latest HotStats UK Chain Hotels Market Review. Statistics for August 2013 has […]

The United Kingdom government may declare the 2012 London Olympic Games a success, but the same simply can’t be said about London hoteliers. The “Olympic effect” as billed by many continues to hurt London hotels, according to the latest HotStats UK Chain Hotels Market Review.

Statistics for August 2013 has revealed that London hotels are very still struggling to achieve 2012 occupancy levels. According to HotStats UK Chain Hotels Market Review, the average room rate in August was £135.73, a 15% decline on the same month in 2012, when the average room rate was £159.86. Year-on-year, the decrease in London room rates is 4.2%, from £146.65 to £140.47.

“The dip in rates comes despite a 2.6% increase in occupancy for the month of August 2013 compared with August 2012, up to 85.4%. Year-on-year there is a 2.2% overall increase in occupancy, to 81.4%.”

HotStats UK Chain Hotels Market Review, however, revealed that unlike their London counterparts, hotels in the provinces, enjoyed a slight 2.6% average room rate increase in August 2013, to £70.62, and a 1.6% year-on-year rise to £69.94. Occupancy is said to have increased 2 points to 71.3%, with Birmingham and Manchester outperforming others cities.

“These figures don’t surprise me,” said JacTravel CEO Terry Williamson, whose company typically books around half a million bed nights a year in London. “Last year, hotels hiked their rates for the Olympics and also earlier in the year during the Jubilee celebrations.”

The JacTravel CEO added: “Our view is that occupancy was up in August 2013 not because of a so-called Olympic effect, but because prices were more realistic and people who were displaced last year have come back this year.”

“Royal wedding crept in through haste of response because there was a hotel price hike then, too; but it was the year before!”