A meeting today will thrash out pricing structures for London hotels being sold as part of Olympics packages after criticism of inflated prices.
The British Hospitality Association, the London Organising Committe for the Olympic Games and Thomas Cook, which has been given access to 8% of the 56,000 rooms provided by hotels to LOCOG, were due to attend the meeting.
It follows a meeting earlier this week in which the BHA refuted claims hotels themselves were profiteering from the Olympic Games.
A BHA spokesman confirmed that hoteliers had sought legal advice over their contracts to supply rooms at preferential rates to the London Organising Committee for the Olympic Games, but said there was no indication that any companies would take legal action.
Thomas Cook, which is selling hotel and ticket packages, also came under fire, with the BHA calling its prices “grossly inflated”.
BHA chief executive Ufi Ibrahim said the rates charged by hotels as part of the LOCOG agreement were “fair and reasonable” and were below the current market rate to support the games.
He added: “These agreements (with LOCOG) stipulate that all participating hotels will charge room rates calculated on an agreed formula, which restricts hotel operators from increasing prices beyond CPI (Conumer Prices Index) increases and ensures fair pricing. That rate broadly represents the average of a hotel’s room rates between 2007 and 2010.”
Thomas Cook said it would not comment on commercial discussions.