London hotels received 120 thousand room refusals. Such an unexpected situation in the hotel market of the capital of Britain happened after the organizers of the 2012 Olympics refused to book accommodation for workers, visitors and journalists, who were to take part in service and coverage of the major sporting event of four years.
According to the English edition Daily Mail, 120 000 rooms are the fifth part of the total number of rooms, which the Organization Committee of the London Olympic Games planned to book for its own needs.
It should be noted that new situation is more winning for the London hotels. Thus, according to the agreement with the organizers of the Olympics hotel should have transferred a part of the hotel rooms in advance. But now London hotels will be able to take advantage of current market conditions and offer rooms at a better price on the eve of the important sports event. It should be pointed out that returned rooms represent all London price segments from luxury to budget hotels.
But not all hoteliers are happy that such a large number of proposals appeared on the market. A number of market experts believe that selling of such a significant amount of empty rooms for the remained time before the Olympics is not possible. Some analysts predict losses of the London hotel industry from unsold rooms, which up to various estimates can reach 3.5 billion dollars.
It is worth noting that prices for hotels in London have grown sharply on the eve of the Olympic Games. Today prices are 2-3 times higher than on average in 2010 and 2011.
Nevertheless, potential attractiveness of the Olympic Games can help the British to avoid significant losses. Representatives of the state tourism agency VisitBritain note that appearance of a large variety of rooms on the market will create a favorable environment and encourage active booking.