Royal Wedding lessons for Olympic Games pricing

There is a lesson to be drawn from the Royal Wedding weekend and how hotel pricing on such special occasions can impact negatively on occupancy. With London occupancy rates dropping to about 60% (according to a survey by TRI Hospitality Consulting) on the day of the wedding, it would seem that the strategy of some accommodation providers to inflate room rates (for some up to seven-fold) might not have been the wisest decision.

Although other factors have been cited as having had a detrimental effect on occupancy – such as lower corporate customers and more people travelling abroad due to the longer break – it is undeniable that higher room rates and non-flexible packages have been detrimental to hotels in the capital.

Although, as previously mentioned, it is normal to expect higher-than-normal rates during special events – a normal consequence of supply and demand – these rises should be kept reasonable and in line with expectations and what visitors may be prepared to pay. Similarly, packages should remain flexible not to limit the number of visitors interested by conditions that would not suit their particular preferences and priorities.