Dec162008

London Rates Down, and Hotel Guests Too

London average room rate in November 2008 dropped 5.6% to £130 per night from November 2007 rates.

For Americans, that comes out to $200USD per night at today’s exchange rate of $1.54 = £ 1.  That sounds expensive , yet compared to November 2007 when the average room rate was over £137 per night and the exchange rate was $2.02 = £ 1, the average room rate has dropped from $277 per night to  $200US.  That is nearly a 30% reduction in room rates for the American tourist in one year. 

 

The Euro has also gained in value from 1.40€ per £ 1 in December 2007 to just 1.10 € per £ 1 currently.  The reduction in price of UK hotels by 20 to 30% for Europeans and Americans still has not generated increased tourism.

 

UK Hotel Occupancy Declines from November 2007 to November 2008

London    – 6%  to 79.5% occupancy in November 2008

 

I think the hotel consumer needs to keep in mind while reading all the doom and gloom hotel news in late 2008 that 2007 was a peak in hotel room rates.  London hotels made record profits in 2007 and occupancy was at its highest in ten years since 1997.

 

The fact that airfare is a bargain during this final quarter of 2008, hotels in London and the UK cost 20 to 30% less than a year ago for millions of tourists, and occupancy is still declining at an accelererating rate indicates 2009 will be a year of remarkable value for travelers able to take advantage of the hotel economy downturn for some personal leisure benefits.

 

Story sources:

PKF Consulting April 11, 2008 – UK hotel sector well-positioned for challenging 2008.

Hotel Travel News November 14, 2008 –  London Hotels Set for Tough Year

Hotel Travel news December 15, 2008 – UK Hotels Feel the Pinch

 

 

 

 

 

 

About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined BoardingArea.com in 2008.

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