A number of hotel chains joined the “fair pricing” scheme for the London Olympics, but many feel they are the ones being taken advantage of.
In an effort to prevent hotel prices sky-rocketting during the London Olympics, the London Organising Committee and VisitBritain created a fair pricing scheme. The idea was that if hotel prices were stable then many more visitors would want to visit the games.
As part of this package, a number of hotel chains sold rooms to the Olympic organisers at fair prices which were then due to be sold on through the official hotel supplier – Thomas Cook.
The trouble is, Thomas Cook don’t seem to have gotten the idea and according to chains including Hilton, Thistle, Guoman and Starwood, the travel agent is in some cases selling rooms for more than 4x what they were sold to the London Olympic Committee for.
One example in the London Evening Standard quotes a package with a face value of £1,740 is being priced at £6,499 for three nights at the Hyatt Regency Churchill.
A crisis meeting between London Organising Committee and the British Hospitality Association has been called to try to avert legal action.