2012 Olympics could hit hotel rates
Destinations that host major sporting events don't always benefit from an additional influx of visitors, warned a market research company this week as the UK gears up to host the 2012 Olympics.
Rubicon, a provider of market intelligence to the hospitality and leisure industry, said a slump in visitor numbers both before and after a major event may lead to a negative effect overall.
It said data collected around last February's Superbowl in Miami demonstrated how average daily rate and occupancy can fluctuate hugely and that destinations don't always come out on top.
Bookings for Superbowl weekend itself were up 37.9% on average compared to 2009 figures, with Sunday - the night of the big game - recording a 61% leap. As a result room rates rose by more than 50%.
However, occupancy and prices fell both before and after Superbowl. In the run up to the weekend the average daily rate was down 2.5% and the post-match average daily rate slumped 7.5%.
Overall, that resulted in Miami hotels achieving lower rates in the four days around the Superbowl compared to 2009.
Rubicon managing director for Europe Andy Storey said: "Major sporting events allow hotels to maximise revenue opportunities but they should be mindful of the pre and post event pitfalls.
"This data should come as a warning to UK hotels when planning pricing around events that draw in transient guests." Report by Lynsey McNeill Travel Mole website.