The European Tour Operators Association has warned London hoteliers they could be left empty handed during the 2012 Olympics unless they modify their expectations. By pushing up prices ahead of the event operators could reduce demand from conventional tourists creating a shortfall in revenue.

London and New York will move a step closer following the announcement of an advertising deal to boost tourism between the two cities. The two-year deal will involves each city giving the other advertising space – on bus shelters in NYC and on the tube in London. Tourism bodies Visit London and NYC & Co. have also agreed to share best practices and help each other out with events.

Occupancy rates increased again for London hotel in May on the back of the attractiveness of cheap Sterling and improved economic outlook. However regional hotels continued to struggle, according to monthly figures released today by PKF Hotel Consultancy Services.Occupancy across London’s hotels increased 1.3% year on year in May, from 81.0% last year to 82.1% this year. Room rate did not do so well, dropping 7.3% to £116.49, as hoteliers looked for ways to attract visitors. As a result, rooms yield fell by 6.4% from £101.77 last year to £95.59 this year.