The doubling of hotel room rates in Oslo has recently made more people open their eyes to Oslo. Hotel rooms that are usually well under 2,000 kroner per night cost between 3,000 and 4,000 kroner.
A quick search on Finn.no shows that a hotel room in Oslo for two adults next weekend (25-26 June) will cost around 4,000 kroner, while the following weekend prices are between 1500 and 8000 kroner. But on the weekend after that again, the prices can be learned more.
Scandic Norway’s director of sales and distribution, Gry Eriksen, says they can’t come up with information about the expected price level in the future, but:
June is always a special month, regardless of war and pandemic, as all sectors meet in both the holiday, leisure and business markets. She says it’s natural to assume that July will return to normal to some extent.
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If it was the price increase after the pandemic and in connection with the war that drove up hotel prices in June, it answers this question:
Only market demand affects the price level. Our prices are dynamic, and they are only natural with differences between high and low season. Periods of high demand can have such an effect.
Peter Wiederstrøm is a hotel consultant at Wiederstrøm Hotel Consulting, and he was interviewed by several media outlets recently about the crazy rates. He’s analyzed numbers from the Benchmarking Alliance, and he can tell us hotels are much more crowded than last year, giving higher rates.
Simply put: Prices are subject to supply and demand, as well as hotels’ ability to drive price improvement. There are a number of factors in this. Usually room rates in hotels with high occupancy or hotels where high occupancy is expected are higher than room rates in hotels with low occupancy. So when the pressure is big, for example because of conferences, concerts or other things, prices are high, he says.
In other words, if you are trying to find a cheaper room, stay away from the bigger and more popular hotels.
Rising prices for a number of services, higher interest rates, and an increase in the cost of electricity and food have led experts to warn against going on holiday. This year’s holiday may be too expensive for many.
The fact that people have missed out on traveling and now seem to be spending their summer unfettered may mean that they are agreeing to pay a higher price. For hotels, higher room rates are absolutely essential, after two years of drought and costs have risen sharply this year, says Wiederström.
However, he is skeptical about predicting the evolution of hotel room rates in Oslo during the summer.
It is impossible to say for sure how high room rates will be in Oslo this summer. It depends on how complete it is, which in turn depends on a number of factors such as air traffic, the weather, the number of Norwegians traveling abroad, the evolution of the pandemic and the war. To name a few, he says, adding:
– We must also not forget that there is a large selection at the hotel show in Oslo; From budget to luxury. From downtown hotels to those outside the city center. This is also reflected in the room rates. As such, the peak is not reached, but there is little to suggest average room rates like those we’ve seen now. July isn’t usually the peak month for Oslo hotels, but it will be interesting to follow developments this year, says Wiederstrøm.
He believes optimism has returned to the hotel market after the difficult years of the pandemic:
– One thing is hotel sales figures in Oslo and many other places, which are now back to old heights, so to speak. But other signs that the industry is on the right track are the many new hotel plans being launched. We who are helping as consultants on new hotel projects are seeing a huge influx of players who want to invest in hotels. He concludes that this applies mainly from north to south.
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