Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. Profit Up at Hotels Across Europe
For the first time in 2019, hotels across Europe have reported profit growth with gross operating profit per available room (GOPPAR) up 5.9% in May to €78.16 – the largest margin of year-on-year growth since October 2018 and a high for the year at almost €30 above the year-to-date figure at €48.09.
The profit spike was led by a 3.7% increase in RevPAR, at €133.46, and a 2.3% increase in achieved average room rate to €174.22.
Madrid, which played host to the Champions League Final on 1 June, saw a huge spike in business at the end of May, with 150,000 football fans arriving in the city. This led to a 15.9% YOY increase in RevPAR, and a 12.9% increase in achieved average room rate to €188.62, the highest level since June 2017. According to HotStats, profit conversion at hotels in Madrid was recorded at 45.4% of the total revenue in May.
Full story at eHotelier.
2. Profit Decline Continues for UK Hotels
Increased costs continue to erode profit at UK hotels, with hotels across the country having recorded a year-on-year drop in profit every month of 2019, up to and including May. Figures for May showed a 3% drop in GOPPAR to £53.75, despite a 0.3% increase in RevPAR to £93.84.
Ancillary revenue remains key to profit with the latest data from HotStats showing a 3.5% increase in F&B spend and a 5.6% increase in conferencing and banqueting. However, these were cancelled out by a 4.5% increase in payroll and a 2.3% increase in overheads.
Full story at eHotelier.
3. Europe Remains Favoured Destination with UK Tourists
Up to 65 million tourists will depart the UK for Europe by 2023, according to the latest report from GlobalData: ‘Tourism Source Market Insight: United Kingdom’. The report states that UK departures to Europe will grow at a compound annual growth rate (CAGR) of 2.88% from 55.9 million in 2018 to 64.4 million in 2023.
According to Laura Beaton, travel & tourism analyst at GlobalData, Spain, France and Italy are going to remain the top destinations for UK travellers for the foreseeable future.
Full story at Travel Daily Media.
4. Growth Forecast for MENA Travel & Tourism
Travel and tourism to the Middle East & North Africa (MENA) region could be worth up to $350 billion by 2027, according to the latest Hospitality, Tourism and Leisure Report by the US-UAE Business Council.
The report predicts that the UAE’s hospitality market alone could be valued at $7.6 billion by 2022, with tourism’s direct contribution to the UAE’s total GDP expected to reach $29.53 billion in 2028.
Full story at Hotel News ME.
5. Serviced Apartments to Take Over Europe
Development of serviced apartments in Europe will outpace that of traditional hotels over the next three years, according to a new report from global hotel consultancy HVS.
The HVS report ‘The Serviced Apartment Sector in Europe: Poised to Outperform’ found that Europe has a pipeline of 23,600 apartments, including 7,500 apartments in the UK. The report also highlighted that serviced apartments have seen higher growth in revenue than hotels, with RevPAR up 7% in the serviced apartments sector for 2018, compared to 5% for hotels in the same year.
Full story at Buying Business Travel.
6. International Tourists Flock to France
France, the world’s number one tourism destination, continues to see tourism arrivals figures grow, with 2018 seeing a 7.6% increase in foreign guests staying in hotels, according to government data. The number of overnight stays in France increased by 5.4%, while RevPAR increased by 6.6% last year.
2018 saw France achieve a 5% increase in tourism revenue to €49.3 billion, fuelled by arrivals from growing markets such as Asia, which saw arrivals increase by 7.4%. International arrivals from India grew 16% in 2018, while arrivals from Japan rose 11%. However, Europe remains the largest customer base for France, accounting for 79% of total market share.
Full story at Top Hotel News.
7. China Market Burgeoning for UK
Travellers from China to the UK have increased by 133% between 2018 and 2019, according to a recent travel trends study by TripAdvisor. Other markets that have seen a sharp increase in arrivals to the UK include Costa Rica (+212%) and Cape Verde (+111%).
Retail remains a big draw for visitors to the UK, with TripAdvisor seeing a 26% increase in visitors researching Bicester Shopping Village as a destination.
Full story at Boutique Hotelier.
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