IDeaS Reveals Winning Strategies for Revenue Optimisation during the London Olympic Games
These questions are further complicated by the lack of certain information on how, when and how much Olympics-related demand will actually materialize – historical data has shown that the four previous host cities did not once reach full occupancy in their Olympic years. Furthermore, London hotels were already completely sold-out during the summer of 2010 without the Olympics, and, on average, 400,000 visitors come to London during the main tourism season. As London already stands as a high-profile tourist attraction, hoteliers have to be extra careful not to displace regular demand.
The first recommendation included in the report highlights the importance of balancing the demand from the Games' attendees willing to pay high rates, against the need to please and maintain their existing customer base at potentially much lower rates. It will be finessing this balance that will contribute to revenue success in the long-run.
The use of carefully planned pre-paying options to help reduce the impact of costly last-minute cancellations, as well as the implementation of minimum length of stay requirements during the period, are just some of the other revenue management strategies IDeaS has recommended in the report.
London hotels are an integral part of the UK tourism industry and may even play a more pivotal role in shaping how a guest views London than the Games itself. This will have a positive, or negative, long-term demand and financial impact on the entire UK market, and is an important aspect to consider when planning for the event. The implementation of these recommended strategies combined with careful and detailed observation of the levels of demand will allow London hoteliers to achieve the correct balance between price and demand and be best prepared for the Olympic Games.
The London Olympic Games are to be held from 27th July – 12th August 2012, with estimates predicting an influx of 350,000 additional foreign visitors per day.
'2012 London Olympic Games: A Strategy Guide for UK Hoteliers' can be downloaded here.
In order to guide hoteliers through this period of increased demand, IDeaS will be hosting a complimentary webinar, on 29th March 2011, to demonstrate the importance of proper planning and share recommendations to help maximize your hotel's revenue.
To register for the webinar 'How Hotels Can Make the Most of Major Events: Strategies to Successfully Optimize Revenue" please follow this link.
Global Client Marketing Manager
Phone: +1 952 698 4236
With more than one million rooms priced daily on its advanced systems, IDeaS Revenue Solutions leads the industry with the latest revenue management software solutions and advisory services. Powered by SAS® and more than 27 years of experience, IDeaS proudly supports more than 8,700 clients in 106 countries and is relentless about providing hoteliers more insightful ways to manage the data behind hotel pricing.
IDeaS empowers its clients to build and maintain revenue management cultures—from single entities to world-renowned estates—by focusing on a simple promise: Driving Better Revenue.
IDeaS has the knowledge, expertise and maturity to build upon proven revenue management principles with next-generation analytics for more user-friendly, insightful and profitable revenue opportunities—not just for rooms, but across the entire hotel enterprise.
For more information, visit www.ideas.com.