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Mixed Revenue Fortunes for UK Hotels in 2016

by Sarah McCay, Contributing Editor, EMEA |

Seven trending hotel news stories that will impact your hotel Revenue Strategy.

1. Profit down in London, but up in Edinburgh hotels

2016 saw mixed fortunes for U.K. hoteliers. Hotels in Edinburgh saw a 12% increase in profit per room in 2016, compared to 2015 figures, according to HotStats. 

Average room rates in the Scottish capital hit a record high at £114.15 ($142), with the Edinburgh Fringe Festival providing another revenue injection with RevPAR at £163.25 ($204) for August 2016, up 11.6% on the year previous.

It was a different story for hotels in London, however. The city saw a 0.4% decline in occupancy and, while average room rate rose 1.1% to £154.25 ($192), according to HotStats hotels lost out on ancillary revenue from F&B, conference and banqueting.

Full story at eHotelier.

2. Threat to Europe’s hotels from OTAs deemed as ‘serious’

According to recent research from Travel Technology Europe, at least 14% of technology buyers attending this year’s event believe that the current threat from OTAs is “very serious”. However, all is not lost, as many believe this will lessen in the future.

Fifty-seven percent of technology buyers surveyed said OTAs present a moderate threat to non-proactive hoteliers. But for those with a proactive approach to attracting customers, the threat is small.

Full story at Hotel Magazine.

London the outlier in 2016 hotel performance, plus 7 trending #revenuestrategy stories Click To Tweet

3. British Hotels and Tourism Industry Denounce New Bed Tax

The British tourism industry has condemned recent proposals by local councils and the Major of London to levy a bed tax to tourists visiting London.

Both UKInbound and the British Hospitality Association have openly criticised plans for a “modest tourism levy” similar to those already in place in cities such as New York, Paris and Rome. 

Full story at Travel Weekly.

4. Europe remains most visited region in the world

Despite political turmoil and security challenges, the demand for Europe by international travellers remains at an all time high. According to the European Travel Commission, the region welcomed 620 million international tourist arrivals in 2016 – an increase of 2% over 2015 figures.

Top growing destinations included Iceland (+40%), Cyprus (+20%) and Slovakia (+19%), while established markets such as Germany and France still saw double-digit group.

Full story at Hotelmarketing.com.

5. UK sees hike in inbound tourism

The latest figures from the U.K.’s Office for National Statistics show that the country continues to see healthy growth from its inbound tourism sector. ONS figure for November 2016 showed 3.1 million inbound visits, up 17% on the same period in 2015, while overseas visitor spend jumped 14% to reach £1.7 billion ($2.12 billion).

According to VisitBritain, 2017 is predicted to see further growth, with inbound visits forecast to reach 38.1 million and spend expected to top £24 billion ($29.92 billion) for the year.

Full story at Hotel Owner.

6. Gulf widens between leisure and business hotels in the UK

A weaker pound and an increase in staycations has bolstered the leisure hotel market in the U.K., while trading uncertainties have led to a decline in corporate stays, according to the latest HVS Hotel Bulletin Q4 2016.

Hotels in cities with a developed tourism industry performed better at the end of 2016 compared to traditional business destinations where demand was dampened following depressed GDP growth.

Read more at HVS International.

7. Dubai hotels to benefit from experiential tourism demand

Travellers to Dubai are no longer just going for the sun, sea and sand, according to recent reports on the market. The UAE city saw 6,700 new hotel rooms added in 2016 and, with an average occupancy of 78%, business appears to be steady. However, as the region adds more attractions in the form of theme parks and tourism establishments, average length of stay is expected to increase.

According to the organisers of Arabian Travel Market, family-orientated attractions and experiential tourism are expected to bolster the market further in the near future with tourism expected to generate AED236 billion ($64.25 billion) by 2026.

Full story at Hotel News ME.

Stay up on hotel Revenue Strategy news and discuss industry tech trends in the Hotel Revenue Strategy Leaders Group on LinkedIn.

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Sarah McCay, Contributing Editor, EMEA

Sarah McCay, Contributing Editor, EMEA

Sarah is contributing editor covering Europe, Middle East & Africa (EMEA) for Duetto. An experienced B2B travel industry journalist, Sarah spent 14 years working in the Middle East, most notably as senior editor – hospitality for ITP Publishing Group in Dubai, where she headed up the editorial teams on Hotelier Middle East, Caterer Middle East and Arabian Travel News. Sarah is now based back in the UK.
Sarah McCay, Contributing Editor, EMEA
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Sarah McCay, Contributing Editor, EMEA

Sarah is contributing editor covering Europe, Middle East & Africa (EMEA) for Duetto. An experienced B2B travel industry journalist, Sarah spent 14 years working in the Middle East, most notably as senior editor – hospitality for ITP Publishing Group in Dubai, where she headed up the editorial teams on Hotelier Middle East, Caterer Middle East and Arabian Travel News. Sarah is now based back in the UK.