Figures just out from TravelClick two days ahead of the Olympics opening ceremony show that occupancy has risen to 80.4 per cent during the Games and two reports reveal that the majority of hotels in the capital are, on the whole, positive about the effect the event will have on their businesses during and after the event.
When asked about the long term effect the London 2012 Olympics would have on the conference and meetings market in the capital for the 2012 London Venues Business Report, 87 per cent said they thought it would be positive with 48 per cent already seeing increased bookings for the four months post-Olympics.
Of the 100 hotels and conference venues questioned for the report, commissioned by The Westminster Collection, Unique Venues of London and The Conference Bench, 51 per cent said the event would bring a boost in trade, with half of that number anticipating revenue increases of up to 30 per cent.
During the Games, 38 of the questioned venues, which included the Jumeirah Carlton Tower, Claridge’s, Park Plaza Westminster Bridge and InterContinental Park Lane, have 30 per cent of their event spaces booked out.
While the London Venues Business Report looked at the outlook for the conferences and meetings market, earlier this week accountancy firm PwC released a statement regarding the outlook for London’s hotels post-Olympics.
In its report, 'Seven years on: how far have London’s hotels come since we won the Games?' PwC's head of hospitality and leisure research Liz Hall said the investment made in the capital's hotel sector to both build new ones and improve the existing properties would 'leave a powerful legacy for 2012 and beyond.'
However, she said the 33 per cent growth in the luxury hotel market and the 60 per cent growth in the budget sector made in preparation for the Olympics could lead to more competition post-Olympics.
"Many operators are positive about London’s prospects after the Games, encouraged by the global awareness of the capital as a destination and the ongoing improvements in infrastructure," she said.
"Others, however, have voiced concerns about the supply spike and how it will be absorbed. If there is a post-Games travel dip, trading could get very difficult – especially in East London.
"The challenge for London's hoteliers after the Games will be how to differentiate themselves in such a competitive market off the back of the Games feel good factor."
In June, TravelClick said the Olympics legacy was already a positive one with reports that a third of rooms at the 75 hotels it surveys across the capital were already booked out for the August bank holiday.
During the Olympics, TravelClick said Tuesday 31 was currently the busiest day for the hotel sector with committed occupancy of 86 per cent.
Hotel prices during the Games are up an average of 70 per cent on the same time last year and reach an average high of £193 on the night of Sunday 5 August, the night of the men’s 100m final.