Vietnam addition from Thomson and First Choice

Vietnam addition from Thomson and First Choice

Wednesday, 26 October 2016 14:00

Thomson an...

Ranch Rider adds authentic Arizona ranch for next year

Ranch Rider adds authentic Arizona ranch…

Wednesday, 26 October 2016 11:00

Keen to expand on its portfolio of authentic US ranches, Ranch Rider will be introducing Arizona’s Hideout Working Ranch in its 2017 brochure, which is situated near Portal near the...

Qatar Airways announces daily Seychelles flights

Qatar Airways announces daily Seychelles…

Wednesday, 26 October 2016 08:00

Qatar Airways will provide UK holidaymakers with greater access to the Seychelles from December 12 when it launches daily flights via Doha.

HF Holidays highlight winter breaks

HF Holidays highlight winter breaks

Tuesday, 25 October 2016 14:00

HF Holidays is promoting a selection of winter getaway including a Christmas Craft Weekend at Dovedale in the Derbyshire Dales, Festive Walking At Dovedale, A Seasonal Stay at Malhamdale in...

Flybe puts more summer 2017 routes on sale

Flybe puts more summer 2017 routes on sa…

Tuesday, 25 October 2016 11:00

Flybe has put more early release routes on sale as part of its preliminary summer 2017 schedule.

YHA submits plans for London’s first ‘Super Hostel’

YHA submits plans for London’s first ‘Su…

Tuesday, 25 October 2016 08:00

A planning application has been submitted by YHA (England and Wales) to open its first Super Hostel in London.

£2.3million immigration hall upgrade plans at Bristol Airport

£2.3million immigration hall upgrade pla…

Monday, 24 October 2016 14:00

Following a major overhaul of the security search area for departing passengers, Bristol Airport has unveiled plans to address congestion in arrivals.

Intrepid targets socially conscious Gen Z with new Geckos age-range

Intrepid targets socially conscious Gen …

Monday, 24 October 2016 11:00

30 year olds will be ‘too old’ for Geckos Adventures next year, as the Intrepid Group has announced that it will cut the age range to meet a growing demand...

New survey reveals just one in 12 Brits manage to wangle an upgrade

New survey reveals just one in 12 Brits …

Monday, 24 October 2016 08:40

New research from has revealed that only 8% of British travellers have actually managed to secure a free upgrade for their holiday, with flight upgrades and hotel room upgrades...

Just You launches travel trade solo experience

Just You launches travel trade solo expe…

Friday, 21 October 2016 14:00

Just You has announced its largest investment to support the travel trade with the launch of 200 joint marketing events to promote solo travel.

Spontaneous people are happier according to Snaptrip survey

Spontaneous people are happier according…

Friday, 21 October 2016 11:00

Spontaneous people are often believed to lead more exciting or glamorous lifestyles and a new study has confirmed that they are happier in all aspects of their lives.

Top Brighton attractions on Combi-Saver tickets for half term

Top Brighton attractions on Combi-Saver …

Friday, 21 October 2016 09:00

Visitors to Brighton this October half term can save up to 20% on its top three paid-for attractions with combination tickets now available for British Airways i360, SEA LIFE Brighton...

Free cabin upgrades with Cosmos Tours

Free cabin upgrades with Cosmos Tours

Thursday, 20 October 2016 14:00

There still’s time for agents to book a Croisieurope river cruise for their customers with a free cabin upgrade on a range of river cruises throughout Europe, when booked with...

Last minute autumn breaks available at Haven

Last minute autumn breaks available at H…

Thursday, 20 October 2016 11:00

Agents can still give their customers a last minute family break this autumn from £99 when booking a Haven holiday between now and November 5.

Skiers urged to head east for best piste costs reveals new report

Skiers urged to head east for best piste…

Thursday, 20 October 2016 08:00

Cash-conscious skiers can avoid the slippery slope of higher prices for their annual downhill trip by heading to ski resorts in Eastern Europe.

Design an anniversary poster for DFDS competition

Design an anniversary poster for DFDS co…

Wednesday, 19 October 2016 14:00

Ferry operator, DFDS, is putting out a call to professional and amateur artists to create a poster that will be used in their 150th anniversary celebrations this year.

AndyArcherAll industries have moments when supply and demand suffer. Case of point: if a thunderstorm knocks down trees in your town, good luck finding a chainsaw, and should you find one at all, you'll pay a steep price. While expected, unlike a thunderstorm, the Olympics are a blizzard that hits one lucky city with demand every four years.

Unsurprisingly, this Olympic demand also reflects the price of hotel rooms. It has been reported that with more than 900,000 visitors expected at the games and only 110,000 hotel rooms are available - most properties are already reserved from mid-July to mid-August. Those vacant now charge anything from double to four times more than their standard rates. According the Huffington Post, rooms at the Travelodge in Stratford have risen from £50 ($80) per night to £274 ($436) for late July.

I recently spoke with Frederic Deschamps, VP of global revenue optimization at Carlson Rezidor Hotel Group — which run the Radisson Edwardian chain in London — about how the games are affecting hotel pricing. Frederic talked about his company's efforts to price hotel rooms effectively ahead of the demand spike in order to avoid the impression of price gouging or starting price wars. Here's what he reported.

How do major events like the Olympics impact hotel room pricing?
Major events are a mixed bag in terms of pricing — on one hand they create demand in excess of capacity; on the other hand they compress demand, creating troughs around event peaks. Depending on timing, they can also displace recurrent demand from loyal business travellers, which can hurt long standing relations.

Events like the Olympics can reset prices at higher levels, as consumers adjust to higher prices overall. But from a revenue standpoint, the benefit depends on timing and underlying demand. Major events are no substitute for steady-state pricing strategy based on demand and pricing elasticity.

What are you experiencing in terms of demand/pricing around the upcoming London Olympics?
Demand is likely to exceed capacity in parts of London and hotels are setting premium pricing accordingly. However, demand is neither strong nor more price-sensitive, so we're paying a lot of attention to promotional opportunities and competitive activity.

What advice would you give to hoteliers post-Olympics regarding their on-going pricing strategies?
Post-Olympics and towards the end of summer, I would expect that the price elasticity of leisure demand will increase for some time, we just don't know how long. By implementing an elasticity-based pricing model and strategy, hoteliers can catch on to this and spot when pricing returns to back to sustainable levels.

How much additional revenue has Carlson Rezidor Hotel Group been able to generate as a result of taking a dynamic approach to pricing and revenue management?
As a result of switching to a price elasticity-based revenue management approach, we have seen an increase of 2-4% in unit revenue for hotels that follow the rate recommendations.

Do you think as an industry, hotels need to do more to avoid costly price wars?
The impact of price wars depends on what they are based on. At times, they serve as a mechanism to aid price correction, but these occurrences are few and far between.

Our hotels are selective in using price discounts to optimise revenues. We base decisions on price elasticity, cross-elasticity and break-even analysis and advocate price wars as a substitute for steady, reasonable and price elasticity-based approaches. This provides customers with sensible price fluctuations and a fair return to hotels.

Major events like the Olympics clearly set the biggest pricing challenges, but they are also the best opportunities a hotel will face. Fortunately, unlike sudden disasters, the Olympics agenda is planned in advance, so hoteliers have sufficient time to prepare.

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