UK hoteliers are still experiencing tough trading conditions, as figures for June, released today, show the market has still failed…
UK hoteliers are still experiencing tough trading conditions, as figures for June, released today, show the market has still failed to gain back the ground lost in June 2002, according to PKF. London hotels reported occupancy up 1.8% to 78.9%, but a 5.5% drop in room rate to £100.18, left rooms yield trailing at £79.07, down 3.8% on last year. However, with June 2002`s two bank holidays and the Queen`s PKF, rooms yield had plummeted 14.6%, which means in real terms this year`s further decrease is more serious than it initially appears.
UK hoteliers are still experiencing tough trading conditions, as figures for June, released today, show the market has still failed to gain back the ground lost in June 2002, according to PKF.
London hotels reported occupancy up 1.8% to 78.9%, but a 5.5% drop in room rate to £100.18, left rooms yield trailing at £79.07, down 3.8% on last year. However, with June 2002`s two bank holidays and the Queen`s jubilee celebrations, rooms yield had plummeted 14.6%, which means in real terms this year`s further decrease is more serious than it initially appears. Despite the slight increase in occupancy, London has not returned to 2001 trading levels, let alone the heights of 2000 or the late 1990s.
Outside the capital, hoteliers fared a little better, seeing occupancy up 3.8% to 73% and room rate creeping up 0.7% to £62.37, boosting rooms yield by 4.5% to £45.52. But again, looking at last year`s figures, the regional hotel market reported rooms yield down 7.1%, so the market has not yet clawed back the losses of June 2002.
Melvin Gold, managing director of hotel consultancy services at PKF, said “London continues to be more influenced by global events, while the hotel market outside the capital is more affected by the domestic economy. The recent interest rate cuts by the Bank of England show that steps are being taken to tackle concerns about the economy, but any downturn in the UK economy affects the hotel industry, particularly businesses outside London. Trading continues to be difficult and hoteliers are striving to achieve last year`s rates, with the focus continuing to be on occupancy growth. The main message seems to be that it`s not good – but it`s less bad!
“Forecasting remains difficult in the global environment, which still remains somewhat fragile. In the UK we have recently seen many positive images, with major events such as the Wimbledon tennis championships and world famous golf tournament the Open Championship being beamed onto TV screens around the world, which can only be a boost to the leisure and tourist industries. However, the unexpected strike at Heathrow, the UK`s key international airport, has been a blow to the nation`s reputation as a travel destination and those images are a negative with the potential to undo much of the tourism industry`s hard work.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
