Hotel industry showing recovery, BTI UK survey reveals
The global hotel industry is continuing to show strong growth with average room rates increasing across all regions, a survey from BTI UK has revealed.
According to its own figures, in the six month to June the average cost of a room increased 6% to £107.74 . Eastern Europe recorded the biggest rise – 27% – while “substantial” increases were also recorded in the Middle East and Africa.
Comparatively, only the UK, Europe and Africa showed any growth last year.
BTI UK hotel relations general manager Margaret Bowler said: “Overall the global hotel industry continues to show clear signs of recovery. Eastern Europe and Asia Pacific have seen particularly strong growth which is indicative of increased business activity in these regions.
“Exchange rates have been a major factor in declining rates in the US in recent years. However, as the US dollar strengthens key cities have started to see growth in their average rates.”
Turning to the UK, she said the London bombings are likely to see a shift in bookings away from key business destinations to provincial towns and cities.
The survey showed that Moscow has replaced Milan as the most expensive city with average rates increasing 29% to a little over £165. Milan dropped to sixth after a 2% fall.
Rome was second with a 13% average room increase to £157 followed by Bangalore, Paris and New York.
London was the seventh costliest have recorded a 6% increase to £136.66.
The highest increase – 8.8% – was recorded in the budget sector and the lowest in the four star market, reflecting a preference for companies to downgrade their accommodation as the cheap hotels expand and upgrade.
The five star market is also beginning to recover after being in decline for the past 18 months.
The survey also revealed that business travellers are making their plans further in advance with 30% booking four to seven days prior to arrival.
The travel management firm said it reflects a realisation among travellers that the best rates are not necessarily available at the last minute.
However, 10% of all bookings with BTI UK were cancelled, nearly half of those within 48 hours of arrival.
“This highlights the pitfalls of booking restrictive promotional and Internet rates which carry with them significant cancellation penalties,” said Bowler.
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