JacTravel, a U.K.-based wholesaler best known for its range of hotels online and inbound travel services, said it has seen a substantial decline in London hotel rates, which have now reached normal levels just as the Olympic Games officially began late last week. Rates during the Games had been inflated by as much as 300 percent two months ago, but they have been falling progressively, as it has become increasingly clear that the Olympic Games deters regular tourists to a destination.

Rates after the Games are either back to normal or, for some hotels, are 15 to 20 percent down on the same period last year, owing to promotional rates. JacTravel, which books over half a million bed-nights a year in London, reports that the majority of its hotel partners have opened up availability and reduced rates significantly in the past couple of weeks.

For example, four-star hotels quoting wholesale rates of £300 to £400 have dropped them by around 65 percent to £109 ($172) to£150 ($236). Declines in the lower categories have been even more substantial, with some two-star properties cutting trade prices 75 percent from £200 ($315) to £50 ($79). For example, a double room at a good quality four-star hotel is now £140 ($220) per room to the guest, a double room at a good quality three-star hotel is now £90 ($142) per room, and a double room at a good quality two-star hotel is now £60 ($94).