Thursday, July 5, 2012

Major Event Accommodation

It is interesting to contemplate the long term benefits that a one-off a major event has on accommodation businesses. The multiplier effect that is used to predetermine economic benefits (usually to qualify public spending) is often biased and far from reality.

Guests nights will always suffer well before a major event as usual demand is diverted or simply vanishes as non event participants avoid the hype and perceived bottlenecks in supply. The end of a major event gives a predetermined exit date for guests occupying accommodation to pack-up and leave en masse. This leaves a huge surplus of supply for some time as usual demand that has been blown-off during the event regathers momentum.

Major events are long as they are privately funded - this will ensure efficiencies, and appropriate scale according to demand and the economic environment.

It has been interesting to follow the build-up to the London Olympics this year and observing the media following the same play-book as used in the build-up to the Rugby World Cup by bemoaning hotel tariff rising over peak periods of demand

Much like in New Zealand, there's also been a few stories about savvy members of the public trying to cash-in upon the supposed shortage of accommodation - including Poms commoditizing and renting out tents pitched in the their back yards - a hot new trend in travel accommodation: Garden Camping!

Probably my favourite story about alternative accommodation is about a London taxi driver attempting to change his fortunes due to the prediction that trade will suffer over the games period. 

The taxi driver is maximising his black cab by turning it into a hotel room during his  down-time period at night. The cab's fit-out is optimistically described as "luxury" with a foam mattress, duvet, pillow with official Olympic pillow case and bedside lamp, but also a Paddington Bear teddy, solar-powered fridge, a radio and an iPad. 

The taxi hotel is all yours for £50 a night, and you can visit the Wimdu website to book online.

Unfortunately the cab is in use during the day, so gusts will need to check-out when the cabbie starts his shift in the morning.

Source: Click HERE

Click the "Get Widget" link below to place this widget on your website or blog!