With just over 12 months to go to the start of the 2012 London Olympics (27 July – 12 August 2012) venues have noticed an increase in advance bookings as companies that arrange annual conferences are booking their first choice venues now and avoiding the period of the games. Companies expect that large numbers of employees will want take time off work during the Games.
London Hoteliers, particularly those in the luxury sector are being warned to avoid pricing themselves out of the market for the Olympic Games and to learn the lessons of the occupancy levels during the Royal Wedding Week, when average room rates rose by approximately 23% and the luxury hotels saw a 24% drop in occupancy during this period.
London is expecting around 380,000 visitors for the Games but experience has shown that estimates are sometimes way off the mark as with Beijing, who expected 400,000 and only 235,000 arrived and previously Sydney who expected 132,000 but received only 97,000 visitors.
The luxury hotels have also been warned of the 64 new hotels due to open in London in the next 12 -18 months, of which approx 1500 beds will be in the budget sector.