London’s post Olympic recovery: Legacy or promotion?
One year on from the Olympic Games, much ballyhoo has been made about the legacy of the Olympics and a resurgence of tourists to London this summer is cited as a positive impact of staging the Games.
However, research by online travel wholesaler JacTravel suggests that the recovery may have at least as much to do with promotional deals as with any post-Olympic legacy.
JacTravel has analysed wholesale prices for London hotels in the 4 and 5-star categories during the Games period, 27 July to 12 August and has concluded that the average prices are not just substantially down on the inflated rates seen during the 2012 Olympics but are, in real terms, less than they were in 2011.
In the five-star category, the average room rate this year is £124.80 per person per night, less than half the rate during the Games, which was £ £250.65 pp/pn. However in 2011 the average rate was 6% higher at £132.50 pp/pn.
In the four-star category, the average for the same period, 27 July – 12 August, is £62.13 per person per night, less than 60% of the 2012 rate, which was £107.84 pp/pn. In 2011 the average rate was £57.77 pp/pn, which was lower than this year’s but when one takes inflation in
to account (4.8% in 2011 and 3.1% in 2012) this year’s average price represents a slight reduction in real terms.
| Year | Avg 5* Rates (£) | Avg 4* Rates (£) | Terms & Conditions |
| 2011 | 132.50 | 57.77 | 24 hours cancellation; no min nights |
| 2012 | 250.65 | 107.84 | Cancellation 60 days; Min 3 nights |
| 2013 | 24.80 | 62.13 | 24 hours cancellation; no min nights |
Kasia Marciniak, JacTravel’s chief buyer for London says: “Headline rates are not down; they’re up but the promotional deals in the wholesale market are so substantial that they are having an impact on the average prices we are seeing. Many hotels are offering 10-20% discounts over a whole stay, particularly where it includes traditionally quieter days, or they are bundling in additional bonus nights. What I’m hearing is that many hotels lost out on regular business due to the Olympics and they feel they need to do something special to attract major clients back. Nobody is saying there has been a boost in demand from staging the Games.”
JacTravel is an independent, privately owned, wholesale travel company specialising in the provision of hotels online and inbound services to the travel trade. It is also Scotland’s largest inbound tour operator by turnover and staff numbers. In 2007, it was named Thistle Award Winner of Tour Operator Program of the Year and was a Thistle Award finalist in 2009 & 2012.
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