Overnight accommodation in London during the Olympics is 46 per cent more expensive compared to July 2011 and 75 per cent more expensive than August 2011. The most expensive day to book a hotel during the Games is July 28th (£251 on average) and the cheapest is August 12th (£226 pounds).
These are the findings of the trivago Hotel Price Index (tHPI), which shows the average overnight accommodation prices for the most popular European cities on trivago.
The July tHPI shows a rapid increase in London prices compared to the previous month: a London hotel room in June costs an average of just £182 (£28 less than the July average). Excluding the week of the Olympic Games, hotel prices in London have been gradually increasing since January at an average of 8 per cent (£13) per month. The average room currently costs £75 (56 per cent) more than January.
In addition to rising hotel prices in the capital, the rest of the UK is experiencing similar increased prices compared to this time last year. The most noteworthy include Brighton (up £111), Manchester (£92) and Cardiff (£83) – up 19 per cent, 15 per cent and 12 per cent respectively compared to July 2011.
While London hotel prices have risen by 15 per cent during July, elsewhere in Europe prices have decreased dramatically in comparison to June 2012. Out of the 50 major cities listed in the July tHPI, London is the only city with an average overnight accommodation price increase.
And, with prices up in the UK, many UK citizens are travelling abroad for their holidays. During the Olympic period, 63 per cent more UK residents than usual are heading to Amsterdam, 59 per cent more to Barcelona and 50 per cent more to Dublin.
Earleir this year, BigHospitality reported that hotels both in and outside of London are on track to benefit from London 2012, with occupancy and room rates predicted to continue to rise. Hotel industry experts predicted occupancy to be at 84 per cent in the capital and 72 per cent in hotels outside it, despite earlier fears that the event may not bring the high volumes of guests expected.
We also reported last month that hotels in London are reporting strong business immediately after the 2012 Olympics, dispelling fears that the capital could suffer a post-Games slump.
For the tHPI, prices of a standard double room are calculated on the basis of one million daily price inquiries for overnight hotel stays generated through the trivago hotel price comparison service.