Olympic-time high prices can ruin London

Deputy Mayor of London Kit Malthouse told the Hospitality and Tourism Summit that “the last thing we need is [US reporter] Katie Couric on TV remarking how expensive the city is.”

“We are conscious some cities have made a mess of it. There have been notable problems with the Games. Atlanta never really recovered,” Malthouse told the event in London.

“London is an expensive place to live. The value proposition is critical. London needs to be somewhere people can come to regularly,” he added.

The warning by Malthouse comes as figures from Britain’s top inbound tour operator JacTravel show hotel bookings in the city for the duration of Olympics have fallen by 30 percent compared to last year.

JacTravel said bookings for London in July and August are 35 percent and 30 percent down on last year respectively.

JacTravel’s chief executive Mario Bodini said the fall represented a “worry” for his company adding it is due to people avoiding London visits during the Olympics.

“Obviously the people not coming to London because of the Olympics outnumber those who are coming. Most people who are coming have already booked,” he told The Travel Weekly.

Boldini also echoed Malthouse saying hotel prices in London sky rocketed this summer, with a typical four-star hotel room costing £200 to £415 a night compared with a usual rate of £80-£100.

He added a four-star hotel room in Paris would cost only 85-150 euros a night, by comparison.

“The message is that realistic pricing gets results. Hotels which priced their rooms realistically are full this summer,” he said.

This comes as Malthouse further warned that the recent chaos at London’s Heathrow airport over long-delayed passport checks has worsened the situation.

“The stories about Heathrow are a massive deterrent,” he said.

AMR/HE

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