It happened in Athens. It happened in Sydney. Now it is happening in Beijing. As we come up to the games hotels find thay have a shortfall in bookings and are slashing room rates. What this does to the guests who booked early and are paying for the privelege can only be guessed at.
Fan Runjun, an employee of the press department of popular travel Web site Ctrip.com, said many two to four star hotels have reduced prices by 10% to 20% compared to May and June.
Some have slashed rates by as much as 30%.
Like airline capacity, hotel bookings are a totally perishable product. If they are not filled, no matter what the discount (within bounds) money will be lost.
According to the Beijing Tourism Authority, in June the number of visitors to Beijing, including overseas and domestic, declined by 19.9% from a year earlier.
It reports average room prices in three-star hotels are down to RMB400 ($60) per night from RMB700 ($100) in previous months.
Source: The Economic Times India