the favorable exchange rates don't seem to translate into lower hotel rates in the UK
 

I'm searching for hotel options for the first week of December. I visit the UK during the same week almost every year, so I have an idea what the rates at my favorite hotels are like during the same period.

However, the same hotels don't seem to have any lower rates as a result the more favorable exchange rates for American. I've try checking via the hotel's main worldwide reservation or by calling the hotels directly. When converted to USD, I'm not seeing savings for people like me flying from the US to the UK.

Or what am I missing?

Big surge in demand means hotels have put up their GBP rates

Well there may be various factors at play.

Firstly, the favourable exchange rate is likely leading to increased demand from foreign tourists, which in turn increases prices - cancelling out the rate benefit. Similarly, there may be higher demand from UK tourists favouring 'staycations' over foreign hols.

There may also be micro factors - e.g. major events that week in the areas you're looking at.

Have you considered Airbnb? There is an incredible amount of choice on there now, particularly in London.

December is a hugely busy period for London (and its hotels). No bargains to be had...even through discounting channels. Mid Jan might look a bit different.

December is busy in London.

Overall London ADRs are down driven partly by a decline in occupancy. Come back in January for a cheap deal.

Yep - spare a thought for those of us in the UK who are seeing London hotel prices rise in GBP terms.

I've had to trade down and I can only be grateful that there are some "innovative" players coming to the table (CitizenM, Z Hotels etc).

If my two recent purchases on Amazon.co.uk are any guide, Brits should steel themselves for a nasty bout of inflation. One electric kettle went up 25% in the five days between September 21st when I ordered it and the 26th when I resubmitted the payment after Chase declined one on a false fraud alert. Out of curiosity, I checked the other kettle I had bought a few weeks earlier; it had gone up over ten percent.

Of course these are imports responding to the drop in Sterling. Hotel rates are priced locally and will, as you say, probably trend lower in response to weaker demand -- unless an onslaught of tourists makes up for the inevitable drop in business travelers.

I don't think that anecdote is anything to go by at all. Prices for such things fluctuate wildly on Amazon all the time, often related to 'sale' promos not just on Amazon but other retailers against which they auto-price.

It's right that inflation is likely to rise over the coming months, but I don't think the price of your kettle from September 21-26 is evidence of that.

The price of a single kettle wouldn't support my argument, but I thought the parallel change I'd observed in the other kettle's price -- from a different manufacturer and Amazon vendor -- would. Sadly for my career as a crack economic analyst, I've just rechecked the other kettle's price, only to find that I read it wrong. It's actually dropped over ten percent. :(

will $299 roundtrips between the US and London come back as well? :(

I booked my December, London stay in anticipation of the Brexit "uncertainty". The GBP price has tripled, partially attributable to declining supply, I'm sure. But anytime you can buy a currency/exchange rate hedge for free, with a cancel-able reservation, do!

Continental types -- more so women -- coming to London for seasonal shopping is in overdrive since the GBP fell.

Nope. Luxury brands have hiked prices massively. Some Prada shoes I saw at £450 are now £530. Apple's rises are well reported.

There was a window for cheap luxury shopping but it has closed.

Has Primark hiked prices as much?

The recent fare sale on all the US majors was as low as $400 for the Continent and I saw $500 to London with taxes / APD the main driver of the pricing difference.