Many hotels in Beijing have started to publish their room rates for the upcoming Olympic Games period, slated to take place in August 2008, and the prices are generally ten-fold the current rates.
Travel agencies in Shanghai have already received the price adjustment notice. Zhang Jianquan, vice general manager of Shanghai Travel Service, disclosed that hotels in Beijing are now accepting room reservations for the Olympic Games period, but it is not so easy for travel agencies to book rooms. Zhang says the primary reason is the increased price. Second, hotels require that travel agencies need to pay 1/3 of the room fee as a down payment, and another 1/3 at the end of this year.
Agencies are also complaining that some hotels in Beijing also say that travel agencies can't choose individual dates for the room reservations, for the hotels want the rooms to be booked from the first day to the last day of the Olympic Games.
Despite the difficulty in booking hotel rooms, travel agencies in Shanghai confirm that they will launch Olympic Games related travel products. However because it is the first time that China has held the Olympic Games, the high room rate should not stop occupancy levels from remaining very high.