Hoteliers charging inflated prices during Cheltenham Festival have been accused of trying to “milk the festival” as event bosses fear it is impacting attendance.
More than 200,000 racegoers are expected to arrive in the Regency spa town on the edge of the Cotswolds from Tuesday for the highlight of the National Hunt racing calendar.
However, after last year’s attendance fell by nearly 11,000 to 230,000, chief executive Guy Lavender has already warned of a further decline while acknowledging the need to provide better value for customers.
Although tickets for this year were frozen at last year’s prices, Mr Lavender said the cost of hotels and accommodation during the week was having an impact.
Earlier this month, analysis by firm Mybettingsites.co.uk suggested a five-night stay for two adults in Cheltenham for festival week on Booking.com rose to an average £3,288 from £1,081 the week before, marking a 204 per cent increase. It was similar for Airbnb listings, with the price increasing from £589 to £1,717.
The latest estimates show the festival brings in £274m into the local economy.
Nathan Eades, who runs two pubs within a 40-minute drive of Cheltenham called The Halfway at Kineton and the Horse & Groom at Bourton-on-the-Hill, told The Independent many hoteliers took advantage of festival week.
Mr Eades, who does not increase his prices for accommodation during the week, said: “I’m not actually sure how many people have got between £2,000 and £3,000 in this economic climate to justify going to Cheltenham on March four-day racing week. I wouldn’t be able to do it, I don’t think I’m in the minority.
“What will happen is people will find alternatives, it’s as simple as that, so they don’t have to spend so much money.”
Mr Eades wanted businesses to get together for a “reset” on the prices charged. He said: “In recent years, most operators have tried to milk the festival for everything it’s worth. The hospitality industry is going through a tough time currently and has struggled since Covid.
“While we completely understand the temptation to try and make a few extra quid during the festival, this 'formula' is one that is a quick fix and not a lasting remedy.
“The breaking strain will snap at some point. It probably already has for some as they are opting for alternative options away from the racecourse and, ultimately, Cheltenham and the surrounding areas.”
His comments come after Lindsey Holland, who sits on Cheltenham Chamber of Commerce and runs the Cleeve Hill Hotel, defended the price of accommodation in the town.
She told Racing Post: "Hotels aren't being incredibly greedy, they’re not pushing the prices up because they can. It’s about having a formula which works and sticking with it. I’ve spoken to hotels who have said their prices haven’t changed since last year.”
However, Mr Lavender, who took over as the course’s chief executive in January, wrote in his open letter last week: “We have heard both anecdotally and directly that the cost of accommodation is impacting attendance. The fact that many hotel rooms are still available locally, having not sold, re-enforces this view.”
Mr Lavender said any fall in attendance would not be “catastrophic”, adding he expects more than 200,000 people to still arrive for the four-day festival which reaches a climax with the Gold Cup on Friday.
For those who arrive, he said, there will be noticeable changes to improve racegoers’ experience. These include putting down hardstanding for the 7,000 sold-out car parking spaces following last year’s chaos when rain turned parts of the area into a mud bath.
There will also be an easing of course-side drinking restrictions and new coach travel put on with National Express with more than 20 pick-up locations across the country.
For the latest on the Cheltenham Festival, visit our live blog by clicking here while following our coverage throughout the week on our website.
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