Rugby World Cup Fans Face Hotel Hike.

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RUGBY WORLD CUP FANS FACE AVERAGE HOTEL PRICE HIKES OF 29%

Impact of major sporting events on room rates revealed in Hotels.com new HPI

British rugby fans travelling to the World Cup in New Zealand are facing steep average price increases of 29% for hotel rooms, according to the latest Hotels.com Hotel Price Index (HPI).

The booking demand for the six-week tournament in the first six months of the year contributed to the sharp rise with the average room rates in the host cities of Wellington up 29% to £73 per night and Auckland up 11% to £68 per night. The overall rate in New Zealand itself also rose 14% to £70.

As well as big rugby showpieces, the Hotels.com report reveals how Formula One Grand Prix racing can affect prices and occupancy rates in venue cities with the sport being one of the factors behind a 22% jump in Melbourne to £96 and a 5% rise in Barcelona to£102.

Sports fans also helped to boost the price of a room in London by 3% to £113 with the city at full occupancy for the Wimbledon tennis tournament.

The latest HPI also charts how prices can fall dramatically after a major sports event such as the football World Cup in South Africa. The country saw its average room rate tumble by 17% in the first six months of the year to £105 with host cities Cape Town down 20% to £100 and Johannesburg down 13% to £111.

The statistics could provide a pointer to what could happen in London before, during and after the 2012 Olympics with some industry insiders already predicting rates could jump as high as 50%.

Alison Couper of Hotels.com, said: “Prestige sporting events are key drivers of hotel prices and can lead to double-digit percentage increases as many rugby fans have found.

“What is happening in New Zealand and what happened in South Africa could provide a foretaste for what might occur in London next year. It is expected that several thousand additional hotel rooms will be available in the city in the run-up to the 2012 Olympics. However, despite the extra capacity, we would urge people thinking of coming to London next summer to book their accommodation as soon as they can as the demand and prices could soar the closer we get to the event.

“London is always popular with both domestic and foreign travellers but the Games are set to take that popularity to a new level.”

The impact of other non-sporting, one-off events on hotel prices could also be seen in the report. Dublin witnessed a 7% increase in the average cost of a room to £73 with the visits of the Queen and Barack Obama in May enhancing the city’s profile and appeal. Dusseldorf also saw an increase by 17% to £100 after the German city hosted the Eurovision Song Contest in May.

The Hotels.com HPI tracks the real prices paid per hotel room (rather than advertised rates) for 125,000 properties around the world. The latest HPI looks at prices in the first half of 2011 compared tothose in the first half of 2010.