HRG’s latest hotel survey
The tough economic climate continues to impact the international hotel market, according to the latest hotel survey conducted by Hogg Robinson Group (HRG).
Most regions are experiencing a decline in hotel room rates in local currency terms in the first six months of the year.
In the UK, all key cities recorded decreasing average room rates during the period (see chart below).
London fared marginally better than the provincial markets, as visitors enjoyed the weakness of the Pound against the US Dollar and Euro.
Edinburgh continued to see falling rates potentially as a result of events in the banking and finance sector and also due to new hotel openings both in and on the outskirts of the city.
Similarly, Leeds has seen rates fall by 6% on average due to oversupply.
Director of global hotel relations Margaret Bowler said: “As forecast at the start of the year in our 2008 annual hotel survey, mid-year results have shown that the international hotel market is continuing to see average hotel rates fall in many regions. The latest figures suggest that the industry has some way to go before rates stabilise.
“With all key global cities recording rate declines in both quarters, London was the only city where decline slowed marginally.
“Despite the overall downturn in rates across the board, the industry is doing a great job of restructuring and adapting to the market conditions. The hotel industry appears to have learnt its lesson from the last downturn. They are adjusting pricing structures to meet market expectations and to make rates appear more attractive.
“In turn, corporates are reviewing and consolidating their programmes to secure lower rates because there is more availability. However, as shown in the global hotel star rating analysis, many hoteliers do not want to throw away their share of the market with significant price cuts so they are taking a sensible long-term strategy to hold out for rates at the expense of lower occupancy levels.â€
HRG’s interim survey is based on a combination of industry intelligence, actual room nights booked and rates paid by its UK clients during January to June 2009 compared to the same period in 2008.
UK average room rates 2009 vs 2008 (and % variance)
London £151.96 £157.69 -4%
Edinburgh £92.61 £97.40 -5%
Birmingham £87.77 £94.40 -7%
Manchester £94.53 £103.22 -8%
Leeds £83.72 £89.07 -6%
Glasgow £84.17 £95.00 -11%
Bristol £91.59 £96.74 -5%
Heathrow Airport £101.11 £103.93 -3%
Liverpool £85.59 £99.95 -14%
Cardiff £77.90 £85.09 -8%
Newcastle Upon Tyne £95.35 £100.91 -6%
Belfast £92.79 £112.11 -17%
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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