London 2012 hotel prices soar despite release

Hotel News - 02/02/2012

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Sandie Dawe of VisitBritain said that hotels are amid a game with tourists to see “who blinks first” and added that some properties are holding back on selling off inventory to tour operators at reduced rates.

The news comes despite the London Organising Committee of the Olympic and Paralympic Games (Locog) putting more than 100,000 hotels nights back into the public market this week. The organisation had reserved the rooms in 2005 in a deal to ensure accommodation for staff, media and organisers. However officials said later that Locog wouldn’t be needing the excess inventory during the two-week Olympic period and subsequently released them to the public on Sunday.

Meanwhile, VisitBritain maintains that it will be able to attract as many tourists to the capital as it did last year despite analysts predicting that many will avoid London as a result of the Olympics. Some budget travel firms have removed the city completely from destination lists due to inflated prices.

John Penrose, the UK tourism minister, said in a statement that the region was looking to keep traditional tourists on the path to London, rather than just avid sporting fans.

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