Beijing hotels cut rates for max bookings ahead of Olympics

Hotels in Beijing have cut their room rates 10 to 20 percent in a last-ditch effort to attract tourists before the opening of the Olympic Games next month.

Olympic room prices in the average three-star hotel, compared with those quoted in May and June, are now reduced from 700 yuan (104 U.S. dollars) to 400 yuan per night, and in a four-star hotel from 1,500 yuan to 800 yuan per night, China's largest online travel service website Crip.com said on its website.

 "The reasons could be multiple and the price cut during the Olympic is now a trend," Wu Jiaoli, a press officer with the NASDAQ-listed Ctrip.com, said.

"One reason is that the occupancy rate is less than expected; another is to undercut competitors at the last moment," Wu said.

The three-star Beijing Fuhao Hotel has cut its room rates 20 percent during the Olympics compared with June, even though the Olympics occupancy rate is about 70 percent.

"We want to attract more guests during the Olympics at the time people are about to finalize their travel agenda," Tian Ye, sales manager of the hotel, said.

Lowering the price at this time could also help to attract more domestic customers, Ctrip's Wu said.