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London hotel prices 2012


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It seems that bookings at London hotels for the Olympic period are down by around a third on last summer, with travellers being put off by high prices. Hotel wholesaler JacTravel is forecasting visitor arrivals to London in July to be more than 35 percent down on 2011, and August to be almost 30 percent down. They have said that Olympics expectations had been overly optimistic. The travel agent said a four-star hotel room in central London is normally priced between 80 pounds and 120 pounds per night during in the peak summer season, but this year the range is 200 pounds to 415 pounds. Hotel prices in London were distorted when local organisers block-booked 40,000 of London's 100,000 rooms for Games athletes, officials, media and sponsors. In January 2012, 20 percent of these were released back onto the market. But the prices are now hugely inflated. Has any one thought this through? Clearly not. I predict a critical success but a glossed over commercial failure.

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