23 July 2008

HRG sees hotel business flourish despite downturn

Global hotel sales are bearing up well during the economic downtown, according to travel management company Hogg Robinson Group.

Its six month survey revealed the international market is proving resilient with almost every region achieving growth.

Moscow topped the chart as the most expensive city, with 25% growth in rates while Indiaââ¬â¢s booming economy saw Mumbai experience an average rate increase of 37%.

HRG also notes that all the European key markets put in strong performances with Berlin, helped by the international film industry and an upsurge in conference and exhibitions, seeing a rate rise of 39%. It also saw Abu Dhabi enter the top ten most expensive cities for the first time with an average rate growth of 23% - the emirateââ¬â¢s rates now rival those of Dubaiââ¬â¢s.

In Asia Pacific and Eastern Europe rates grew by 20% and 22% respectively which HRG believes is a reflection of those areasââ¬â¢ concentration on the luxury end of the market and a shortage in supply.

London, however, although maintaining growth at 2%, saw business slacken off and is now 16^th on the most expensive chart. In North America, rates have remained relatively static.

Director global hotel relations at HRG Margaret Bowler said: ââ¬ÅâœThe hotel industry has continued to show an increase in hotel rates, albeit at a slower rate than we saw for the same period in 2007. However, as the market softens we can expect to see more hotels adopting sensible pricing in order to maintain current occupancy levels.ââ¬~

• PRINT
• SEND TO A FRIEND
• SHARE

Post your comment

Your Comments (2)

, be the first to post a comment.
Your email:

Your comment title:


Your comment:

Email other comments made to this story

5 characters

• Some hotels will suffer
  
  

  I can only echo Jason's comments. Hotels have had the luxury of being able to focus on room rate with the assurance of decent occupancy.....until now. Hotels that will not adjust (or whose banks will not let them due to high debt repayments) are going to see problems in the future.

  By Mark Cocks, Wednesday, July 30, 2008
• Reality bites
  
  

  The assertion that hotels will have to adopt a more sensible approach to pricing has been shared by many in the sector for some time now. Many hoteliers have been unrealistic about maintaining margins at the cost of occupancy. Looking toward the back end of the year, the market we are now in will simply not allow hotels the luxury to sit back and make these kind of assumptions, least of all how much people with pounds and dollars in their pockets are prepared to pay for their stay.

  By Jason Grist, Wednesday, July 23, 2008