Room rates fall: London hotels unable to cash in on Olympics

The cost of hotel accommodation in London during the Olympic Games has fallen by nearly a third since June.

The price of a hotel stay in London during the Olympics has fallen by nearly 10 per cent since the beginning of the month, according to new research.

Average room rates in the capital, for stays between July 27 and August 12, are currently £146 ($A220) a night – still significantly higher than the same period last year, but down from £160 ($A241) a night at the start of July, and down from £202 ($A304) at the beginning of June.

The booking website Hotels.com, which published the figures, said the biggest fall in prices was at one- and three-star hotels, where average rates have fallen by 38 per cent and 24 per cent respectively.

It said the fall in prices was due to greater availability in the market – several new hotels have opened in the capital this month, while a number of hotels have removed restrictions regarding length of stay. Hotels.com also predicted that prices would fall further in the coming days.

Hoteliers in London have been widely criticised for trying to cash in on an anticipated influx of visitors this summer. London's Telegraph reported last year that some visitors to London during the Olympic Games next summer were being asked to pay up to 10 times the usual rate for a hotel room.

However, high prices appear to have put off many ordinary summer holidaymakers, with one inbound tour operator claiming earlier this year that bookings for breaks in London were down by 35 per cent.

Research carried out this week by the hotel industry website TravelClick suggested that nearly a quarter of hotel rooms are still vacant for the period covering the Games.

- The Telegraph, London