The Winter Olympic Games which took place in Torino from 10th to the 26th of February 2006 have allowed the Torino hotel industry to post record monthly performances with an occupancy rate that progressed by…
The Winter Olympic Games which took place in Torino from 10th to the 26th of February 2006 have allowed the Torino hotel industry to post record monthly performances with an occupancy rate that progressed by 35,7 points to 91,6% and an average rate that increased by 96,8% to 189,50 euros all taxes included. In the end the monthly RevPAR growth (revenue per available room) is exceptional: +222% over the month of February 2006.
Monthly and cumulated results of the hotel industry in Torino February 2006
|
Occupancy rate |
OR spread (pts) |
Average room rate |
|
|
February 2006 |
91,6% |
+35,7 |
189,5 |
|
Cumul 12 months until en February 2006 |
62,5% |
+5,0 |
105,2 |
|
Evolution ARR % |
RevPAR |
Evolution RevPAR % |
|
|
February 2006 |
+96,8 |
173,5 |
+222,2 |
|
Cumul 12 months until en February 2006 |
+7,2 |
65,7 |
+16,5 |
Source:MKG Consulting Database – official hotel chains supplier – March 2006 Hotelcompset
Average room rate and RevPR are expressed in euros, all taxes included
These excellent monthly results have enabled the Torino hotel industry to record a RevPAR on the rise by 16,5% over 12 consecutive months. The results for 2006 will be above those of 2005.
If this monthly performance is particularly spectacular, it is logical with regards to the impact of the recent sportive event of an international scope on the local hotel trade :
- Greece which hosted the 2004 Summer Olympic Games, recorded a monthly RevPAR increase of + 137% in August 2004.
- In 2004 again, the European Football Championship in Portugal allowed the hotel trade of the whole country to post a rise in RevPAR of more than 70% in June.
- The Football World Cup in 1998 allowed France to post RevPAR increases of 30% for the months of June and July
Following the example of 2004, the year 2006 is marked by two major sportive events, the Torino Olympic Games but also the Football World Cup in Germany. As such the performance of the hotels in Torino is an excellent sign of what await the hotels located in the 12 German cities that will host the football meetings.
MKG Consulting estimates that the Football World Cup should generate, in Germany, 4 to 6 points of additional growth of the RevPAR over the whole year.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
