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Potential slump anticipated for London hotels this summer
London hotel industry experts anticipate a potential slump this summer, according to discount travel website Hotwire.com.
Hotwire said that although the British government predicted that an additional 4.5 million visitors would visit the city in the four years after the 2012 Olympic Games, analysts and industry experts are starting to sense that this may be an overly optimistic view
Historically, post-Olympic years have been challenging for hoteliers in host cities as many built new properties for the Games, but were unable to fill them the years after.
In 2011, one year after the Vancouver Games, the city's average hotel prices fell by 29 per cent as occupancy numbers dropped. The same was seen in Beijing where revenue per available room fell by 43 per cent following the Games.
Hotwire said that even amidst the projected tourism boom of last year, the number of tourists to London actually dropped from 3.36 million to 3.18 million.
Tara Stangel, director of Hotwire.com's hotel team, said: "London hoteliers will have to be more creative when it comes to sustaining occupancy during these post-Olympic years. Many seem to sense this already as we've seen an uptick in hotels utilising new channels to maximize revenue."
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