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The third issue of the eviivo Accommodation Index reporting on the performance of the independent serviced accommodation sector in the UK releases key metrics for the last quarter together with the full year outcome for 2010, on a national and regional level:
2010 saw average room rates remain almost flat in comparison to 2009 (+0.5%) and year-on-year growth for the last quarter was certainly negative (-0.6%) due to the bad weather and travel disruptions that took place across the UK in December. Only London saw a stronger increase of 7% in Q4 and 8.5% for 2010 – a trend that will most likely continue this year with the upcoming Royal Wedding and in the run-up to the Olympics in 2012.
On a more positive note, annual occupancy rates for 2010 show a healthy increase of 4.3% against last year with all regions except for Yorkshire enjoying growth, and occupancy rates ranging from 42% in the North West to 51% in London, 53% in the East of England and 54% in the South East.
Nigel David, CEO of eviivo which compiles the eviivo Accommodation Index, said: “It is going to be another challenging year for the accommodation market, with continued pressure on room rates. Nevertheless, as the results for 2010 clearly show, the independent accommodation owners have been active in working to improve their performance and confirm the resilience of a sector that is increasingly embracing the internet.”
“At eviivo, we champion this very important and vibrant sector of the industry and we continuously strive to improve the performance of the 4,300+ independent hotels, B&Bs, guesthouses, inns, cottages and farmhouses that are currently using our frontdesk product. This year, we will carry on encouraging businesses to use the excellent tactical pricing tools, including automated early bird and ‘lates’ discounts, and to create special offers, in order to keep their occupancies growing and further develop their competitive advantage.”
“On behalf of our customers, we will also focus our efforts in driving the number of bookings placed through our extensive distribution network by launching various key initiatives. Our eviivo-owned family of websites which form part of the frontdesk distribution network, alone generated over 125,000 bookings for our customer base in 2010 and we will increase this number to over 200,000 in 2011.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
