Shadow Minister for London and the Olympics, Tessa Jowell, has slammed the “scandal of extortionate price rises” in London hotels during the Olympic and Paralympic Games.
Speaking during the Commons Culture, Olympics, Media and Sport questions, Jowell claimed prices across London were averaging an increase of 315 per cent and she called for action.
She said: “There is a big problem here and while I welcome the Government’s £4m to encourage domestic tourism and yield, the potential £2.5bn Olympic tourism premium, the Government should act to address this scandal of extortionate price rises in London hotels during the Olympic and Paralympic Games.”
Minister for Tourism and Heritage John Penrose maintained the London Organising Committee of the Olympic and Paralympic Games (LOCOG) had “just released” additional rooms to ease the restriction in supply.
He said: “It has always been the case that prices alter during the course of the season, that is entirely natural.
“What has happened in the case of London most recently is that the LOCOG block booking, which she’ll be aware of since it was part of the original Olympics deal, meant that there was a restriction in supply. That has now been eased as a result of the recent release of additional rooms.”
Visit Britain and Visit London have introduced a Fair Pricing and Practice Charter for UK tourism businesses to sign up to. Businesses that sign up to the UK Fair Pricing and Practice Charter will offer pricing that will be fair and reasonable throughout 2012. They will also commit to not artificially inflate pricing levels for goods and services. Macdonald Hotels and Resorts and the Intercontinental Hotels Group have signed up to the charter.
Hotel Booking Agents Association Executive Director Peter Ducker says: “It’s safe to assume that on the peak dates during the Olympics – opening and closing ceremonies and the dates when most events are concurrently happening, prices will be at their highest.
“I’d expect to see higher prices also offered by tour operators with rooms bundled in ’Olympic’ packages.
“Speaking specifically about the corporate, meetings and events market, I am seeing hoteliers treading very carefully to ensure that their key clients in these substantial year round markets are looked after – why wouldn’t they? I certainly haven’t heard of rip-off rates being offered to these markets. Everyone knows that as the dates draw near and supply dries up, rates will rise, which is why HBAs have been working with their clients to nail down what their demand will be and arrange it now.
“The Olympics are a once-in-a-lifetime happening for London – what everyone is really banking on is the legacy benefit rather than the quick profit. That legacy will come from mutual support and loyalty between supplier and client and of course from the great boost of investment that London properties and venues have benefitted from over the last couple of years.”
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