The average price of a hotel in London will drop by 35 per cent following the Olympics, according to new research from Trivago.

However, with the Edinburgh Fringe Festival running north of the border for almost the entire month of August, hotel prices in Edinburgh are up 46 per cent compared to last month.

Across the rest of Europe in comparison to July, hotel prices have decreased in southern destinations and increased in the north.

London prices drop

The average price of a hotel in London will drop by 35 per cent following the Olympics, from an average of £201 per night during the Olympic period (July 27th-August 12th) to an average of just £130 during the following week.

Surprisingly, this is £20 cheaper than this time last year: the average price of a London hotel in August 2011 was £150.

Prices are also down 14 per cent compared to last month (from an average of £210 per night to an average of £181), suggesting that hotel inflation was worst in the weeks leading up to the Olympics.

Edinburgh Festival begins

The popular Edinburgh Fringe Festival began on 3rd August and runs for almost the entirety of the month, until August 27th.

The average price of one night in Edinburgh is £177, which is 46 per cent higher than last month, when the average was just £121.

Prices increase across the UK

Although an increase in Edinburgh hotel prices is normal for this time of year, hotel prices in every main city in the UK and Ireland have increased when compared to August 2011.

This suggests that UK hotel prices in general may be creeping up.

Most noteworthy destinations include Cardiff (now an average of £85 per night) and Manchester (now £87), where hotel prices are up an average of 16 per cent and 15 per cent respectively, compared to this time last year.

More Information

The Trivago hotel price index shows the average overnight accommodation prices for the most popular European cities on the site.

Prices for a standard double room are calculated on the basis of one million daily price inquiries for overnight hotel stays generated through the Trivago hotel price comparison service.

Trivago stores all hotel requests for each month and therefore gives an overview of hotel accommodation prices for the upcoming month.

The index reflects the hotel prices within the European online hotel market: the overnight accommodation prices of over 100 online travel agents and hotel chains create the average hotel prices for cities, regions and countries within Europe.