Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. European Hotels Enjoy 19% Uplift in Profit Per Room
The arrival of better weather has helped bolster business at hotels across Europe. In April, Europe’s hotels enjoyed an 18.9% increase in profit per room, according to the latest poll by HotStats.
Europe’s hotels also enjoyed an 8.5% increase in TrevPAR to €178.41, helped greatly by a 7.7% increase in rooms revenue. The growth in rooms revenue was led by a 5.4% increase in achieved average room rate, to €159.92, and supported by a 1.6-percentage-point increase in room occupancy, to 73.7%.
The growth in Revenue Per Available Room in April 2018 led to a 5.8% year-on-year gain to €115.27.
Full story at HotStats.
2. Middle East & Africa Hotels Continue To Struggle
Hotels in the Middle East and Africa continue to struggle when it comes to rates and revenue, with the latest data from HotStats showing that profit dropped by 12.1% year-on-year in April.
Rooms revenue dropped 7.8% in April, leading to a TrevPAR decline of 7.4% to $224.61 for the region. While occupancy gained a 0.3-percentage-point increase to 74.9% average room rates dropped 8.8% to $176.22
Full story at HotStats.Europe hotel profits warm with weather, plus 7 trending #revenuestrategy stories Click To Tweet
3. Growing Costs Impact Hotel Profits In UK
Increased costs continue to eat into profits for UK hotels, with HotStats reporting a 0.9% decline in GOPPAR at hotels across the country in April. While TrevPAR saw a 0.6% year-on-year increase to £134.12, increased costs for payroll and overheads pushed profit per room down by 0.9% to £47.98.
Sliding demand is another challenge for the UK hotel sector, with April seeing a 0.9% year-on-year occupancy drop to 77.8%, which contributed to a 0.3% drop in RevPAR, to £87.59.
Full story at Hospitality.Net
4. Middle East Hotel Construction Continues Apace
There are 875 hotel projects, representing a total of 216,045 rooms, in the construction pipeline in the Middle East and Africa, according to the latest Trends Report from Lodging Econometrics.
The Middle East pipeline has grown by 23% year on year, with 594 projects totalling 170,490 rooms – marking the 16th consecutive quarter of pipeline growth in the region. The Middle East also has 358 projects/113,830 rooms under construction, up 13% by projects year-on-year. The total Africa pipeline has 281 projects/45,555 rooms and is up 21% by projects year on year.
Full story at Travel Daily News.
5. Supply Growth Drives Down Profits In Makkah
A 6.2% increase in supply has had a dampening effect on the Makkah market, the latest data from STR has shown. The Saudi Arabian city saw a 12.2% drop in occupancy in April 2018, to 66.4% compared to the same month in 2017. This marked the lowest occupancy for the city since April 2010.
Average daily rate (ADR) also fell – down 17.9% to SAR 387.12 (US$103) – the lowest for the month since 2007. However, RevPAR jumped by 27.9% to SAR 257.23 ($68.5).
Full story at Hotelier Middle East.
6. Italy Posts Highest Ever ADR in a Decade
RevPAR was up 4.4% to €79.13 for hotels across Europe in April 2018, compared to figures for the same month in 2017, according to the latest data from STR. ADR was up 2.9% to €108.03 while occupancy was up 1.5% to 73.2%. However, some markets fared better than others.
Italy enjoyed its highest ever ADR for April since 2007, up 1.6% to €149.96, while Switzerland reported its lowest ever ADR for April, down 1.1% to CHF188.30.
Full story at Travel Daily News.
7. UK Leads Digital Adoption In Travel Sector
According to ComScore’s 2018 EU Travel Report, 94% of the UK’s digital population visit travel sites – the highest proportion in Europe. This compares to 86% for Spain, 69% for Italy, 67% for France and 65% for Germany.
The ComScore report, which used multi-platform data from France, Germany, Italy, Spain and the UK, found that mobile minutes represent up to one-third of travel-related minutes. However, consumers are still preferring to convert on desktop. The report found that in January 2018, travel spending on desktop computers averaged €350 to €460 per buyer, depending on the country.
Full story at Hotelmarketing.com.
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