Paralympic Games Outlook: Can London Repeat its Olympic Success?

With the Paralympic Games now underway, we ask if London hoteliers can replicate the successes that occurred during the Olympic period.

New data from TravelClick suggests that success is likely during Paralympic Games with occupancy peaking at 13.9% increase compared to last year.

Olympic Profits

The Olympic period (27 July – 12 August 2012) saw an increase of 62.7% in revenue for London hoteliers in comparison to the same period last year. Overall the average daily rate (ADR) during the Olympics showed an increase of 55.2%, with rooms rates up an average of more than £60 compared with 2011.

“Group bookings really drove the results for hoteliers during the Olympics, showing a revenue increase of 398.4% in comparison to the same time period in 2011,” explained TravelClick international president, Jan Tissera.

“While the variance in room nights during the Olympic Games was not significantly high compared to last year – demand in the London market is normally high during the August time period – the real difference made was in the ADR and revenue and hoteliers should focus on how to optimise their rate strategies for greater revenue while still maintaining high occupancy rates.”

Looking at the Paralympics (29 August – 9 September 2012), for the period as a whole, committed occupancy is currently up 8.2% year-over-year based on current reservations on the books.

At this stage in the booking window, the night of the opening ceremony, Wednesday 29 August is showing the highest committed occupancy figures compared to other dates in the Paralympic period – occupancy for that date is up 13.9% compared to last year.

So long as the shoulder periods around the games can yield profits, this could turn out to be an Olympic summer for London hoteliers.

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