Are you trying to visit Britain, specifically London, for a honeymoon, or do you just want to go visit to tour London? Then you discover that the price seems so expensive, increasing your expenses.
Probably, it happens that you are still planning, and you find out the expenses involved, and you are wondering why London hotels are so expensive.
In this blog post, I will be explaining why London hotels seem or are expensive.
Why are London Hotels So Expensive?
I will be discussing the major reasons why London hotels are so expensive. Some of these reasons can help you work your way around getting a cheaper hotel in London
1. Property price rates are high
One of the expenses of starting up a hotel is getting either a landed property, or probably buying off a built property, and repurposing it as a hotel.
The danger of property prices being high cuts across different situations, which includes hotels. If so much money had to be spent on the property, the hotel will want to meet up with the amount billed to the hotel, as this is what will cover their cost, and provide gain. It is business for them, there must be gains for them in it.
2. High tax rates
Just like you pay taxes on your income every month, the hotel also has to pay taxes. You can imagine if they have to pay high taxes, the only way to make up is to hike the price of their services.
For example, the VAT on hotels in London is 17.5 percent, which is high. Many other top countries in the league of Britain have their VAT on hotels lesser than that, Britain has one of the highest taxes on hotels. Germany is a country that beats Britain on VAT for hotels, as it is 20% in Germany.
So, high tax has a really strong effect on hotel prices, anywhere in the world, which includes London.
3. Staff cost
Hotels are one of the businesses that have several members of staff is necessary and important, as they will have to cater to their customers adequately.
Just like you expect, they can’t pay their members of staff just anything, it has to be at the standard rate. That is more cost for the hotel. As I explained earlier, the more there is a cost to cover, the more the tendency for the price of services to be hiked.
4. The hike in price can be location dependent
The location of the London hotel in question can determine how expensive their service will be. A typical example is a hotel very close to the airport. You can expect such hotels to be very expensive, as their services will be in high demand.
And we all know this law, once there is a high demand, it is just natural that the price comes up.
Another example is the hotel being in a major location in London. If it is, you can expect it to be very expensive.
You can make use of this information in your decision of hotels to book whenever you want to visit London.
5. Season can also affect hotel price
Hotel prices mostly go up during the summer months, around July and August. Christmas is another period when hotel prices skyrocket. Starting from the second week of December to New Year, you can expect a hike.
If there is going to be any national events, it will also most definitely affect hotel prices. You must consider things like this.
I know you might not be able to help not visiting during Christmas if the reason for your visit is because of Christmas. That just means you must be prepared fully for the expenses.
6. Low exchange rate
There are very few currencies that beat Pounds. So, if you are coming from a country like the US to London, you definitely will expect that the currency exchange will affect you a little, as it might seem as though the price is higher than what you are used to in your country.
Worse is if you are coming from a 3rd world country like many countries in Africa, where the currency is low, you will have to spend a lot of your country’s currency.
7. It is just a thing about British Hotels
British hotels are known to be the most expensive in the whole of Europe. Who knows if this results from the inflation in all the states of the UK, just a thing with the UK.
So, even if you are on the lookout for cheaper hotels, you probably should not expect something cheap, especially if what you want is quality.
Besides, the UK is the 6th most visited country in the whole world, you can imagine the high demand for hotels from tourists, visitors, foreign students, digital nomads, etc. The higher the demand, the higher the potential for an increase in the price of the services cost.
I hope you now know why London hotels are so expensive, and now know what to do to avoid excessively costly London hotels.