Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. London room rates buoyed by devalued pound
London’s hotels look set to finally benefit from last year’s EU referendum, according to PwC. The accountancy firm has predicted that revenue per available room will increase by 3.3% in 2017 and 2.5% in 2018 as a result of a weaker pound exchange rate.
PwC, in its European Cities Hotel Forecast, stated that London RevPAR could reach £123 ($149.56) by 2018, with ADR expected to increase to £149 ($181.17).
PwC predicts the gains will be fuelled by an increase in inbound holidaymakers, while staycations from U.K. residents will further boost hotel performance.London room rates buoyed by devalued pound #hotelnews #revenuestrategy Click To Tweet
2. Europe enjoyed record-breaking year for tourism in 2016
According to the latest PwC European Cities Hotel Forecast, 2016 was a record-breaking year for European tourism with 12 million more visitors and 2.8 billion nights spent in tourist accommodation.
PwC predicts further growth in 2017, with the following markets expected to see record growth in RevPAR this year: Porto, 14.8% RevPAR forecast growth, Dublin (8.7%), Budapest (6.8%), Madrid (5.9%) and Lisbon (5.6%). Meanwhile, the following markets will obtain the highest ADRs: Geneva (€300/$319), Zurich (€245/$260), Paris (€229/$243), London (€164/$174) and Rome (€148.2/$157).
3. £300 million rates relief only a ‘tiny drop in the ocean’
The British Hospitality Association has called the U.K. government’s announcement that it will provide up to £300 million ($365 million) in rates relief for local councils in England and Wales a “tiny drop in the ocean”. The BHA claims that small hospitality businesses face an average 23% rates increase, which could force many out of business.
The BHA had previously called for a 12.5% cap in rates rises for businesses in England and Wales, in line with measures recently introduced by the Scottish parliament.
4. Saudi Arabia earmarks $100 million for tourism investment
Saudi Arabia’s Commission for Tourism and National Heritage has pledged more than $100 million (397 million riyals) in loans for hospitality and tourism investment in 2017.
The 2017 funds injection forms part of a five-year strategy that could see the kingdom lending up to three billion riyals ($800 million), as well as employing up to 1.7 million additional tourism staff, as part of economic diversification plans.
5. Sandals Resorts takes UK tour operations in-house
Sandals Resorts is to launch its own ATOL-licensed in-house tour operation in the U.K. As a result, the all-inclusive Caribbean resort operator could process up to 20,000 passenger bookings a year.
According to Sandal’s UK and Europe managing director, Karl Thompson, the move will enable the resorts brand to create “more meaningful marketing and communication partnerships with the trade.” Sandals has already announced a number of travel agent initiatives ahead of launching its ATOL to the trade.
6. Hilton hits 100,000 rooms in EMEA
Hilton has announced that it now has 100,000 rooms trading across its EMEA portfolio, with a further 40,000 under construction and set to open by 2020.
The global brand has opened more than 20,000 hotel rooms in EMEA in the past three years and currently has 50% of its pipeline located in the Middle East and Africa.
7. Hotelbeds sees 26% increase in bookings from Germany
Hotelbeds Group arm Destination Services announced at ITB that it has seen a 26% increase in bookings from the German market from October 2016 to January 2017, with special interest groups and fully independent travellers driving the growth.
South Africa, Kenya, Namibia, India, Peru, Tanzania and Mauritius were the destinations seeing the biggest increases, with Hotelbeds predicting a trend in bespoke holidays from the German market.
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