Over-hype of Olympic business opportunity hurts London hotel industry
From the high price promotion before the Olympic Games to the price reduction promotion during the game, London hotels have suffered a lot of ridicule and abuse. Some people in the industry even characterize the economic operation of the London Olympics as a failure. Hotels, restaurants, taxis, and streets, all expected to be overcrowded, turned out to be empty in the end. This contrast has to make people reflect on the London Olympics. What happened to travel?
It seems unexpected that the London hotel industry encountered Waterloo. After the Olympic Games started, the media frequently exposed, saying that the price of hotel rooms in London was not as high as imagined, and the occupancy rate was even lower than usual. In the densely populated area of London near Kensington Park, several hotels still have a lot of vacancies waiting to be booked, and some hotels are even attracting tourists with price promotions.
But this is the complete opposite of what happened before the game. Before the game, many travel agencies predicted that the market popularity of domestic trips to the London Olympics would be limited. One of the reasons for this popularity is that the industry expects that the London Olympics will increase the flow of people and increase the cost of hotels and air tickets. Before the opening of the Olympic Games, some travel agents estimated that the average price of British tourists during the Olympic Games will be between 20,000 and 30,000 yuan, or even higher, while the price of London hotels has nearly doubled compared with normal, and the price of four-star hotels has risen to 300 yuan. To 350 pounds, even an ordinary standard room in a budget hotel has risen to nearly 100 pounds.
Such a gap undoubtedly makes people question the marketing strategy of the London Olympic Hotel. Before the opening of the Olympic Games, the London hotel industry has been aiming at this Olympic business opportunity, wanting to rent rooms at high prices when a large number of tourists are stationed in London. Profit-seeking hoteliers are even withholding some of the rooms to wait for the best time. However, unfortunately, the so-called large-scale passenger flow did not arrive as scheduled, guarding the unsold vacant rooms, and could only sell them at a reduced price.