The year 2005 appears positive in the majority of the large European countries with performance indicators generally on the rise. However the context of the year 2005 was not…
The year 2005 appears positive in the majority of the large European countries with performance indicators generally on the rise. However the context of the year 2005 was not always most favorable. The economic growth is moderate, the organization of elections in Germany could have generated the wait-and-see policy of the economic players, and London was struck by bombings.
- In spite of the London bombings, the United Kingdom records an increase in the performances drawn by the dynamism of the prices
- While waiting for the World cup, Germany sees its results progressing very slightly
- The very strong growth of supply continues to weigh on the hotel results in Spain
- France largely draws its pin from the play with a strong progression of the individual business customers segment which compensate the drop of the Leisure clientele and the almost stability of the Seminars clientele
Corporate chain hotels results per country for Europe in 2005
Preliminary data
Source : MKG Consulting database – Official supplier of chain hotels – January 2006
Average room rates and RevPAR in euros (All taxes included)
However, the situation is improving and the low point of the last hotel cycle, in 2003, moves away. One notes, in particular, an increase in the volume of the individual business customers segment which has a strong positive impact on average prices and RevPAR (the Seminars clientele remains almost constant). It is thus initially the Northern European destinations, positioned on these market segments in direct catch with the economic activity, which post the best performances.
Another encouraging tendency which emerges from these last 12 months comes from the long haul customers, American and Japanese in particular, whose recovered vitality also supported the activity of European hotels.
Positives results for the United Kingdom in spite of the bombings
The year 2005 could have been much more difficult for the British hotel industry. First, the slowdown of the economic activity was strong, bringing back the country in the ranks of the European Union. Then, obviously, the London attacks were not without effect on the hotel industry.
The occupancy rates of the British capital posted particularly important declines after the month of July, (-9 points in August for example). However over the whole year, the RevPAR of the hotels in London know a positive evolution of 2,0%. In such circumstances, it is a very good result which demonstrates the dynamism of the destination. With occupancy rates that are always very high, although in decrease, the hotels in London did not give up to the panic and maintained the prices on a tendency directed towards a rise.
Birmingham or Manchester did not encounter the same difficulties linked to the bombings and post contrasting situations. In Manchester, the progression of the average rates, associated with very high occupancy levels, is revealing of a particularly
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
