Sales dip but prices rise in capital hotels
London hotels saw a dip in both leisure and business passengers last month after surprisingly increasing rates despite the terrorist attacks.
But Deloitte, in its monthly survey, still described the performance as robust and said very few hotels were reporting mass cancellations.
Figures showed revenue per available room was down only 5% in the month while weekend occupancy slipped 11%. But managing partner of hospitality at Deloitte Marvin Rust said price increases has partially offset the decline.
“Critically, data for the last week of July showed that hoteliers had not cut rates in response to the bombings,” he said. “In fact, rates increased 6%, consistent with our expectation that the terrorist attacks would have a relatively short term effect on the London market.
“Weekend occupancy levels are proving the slowest to recover with figures down 11% for the last weekend in July. Rate increases of 3.5% mitigated the overall impact of this drop.”
He said there remains a “misconception” that the tourist industry is most vulnerable to terrorist outrages with GDP and exchange rates fare more likely to be affected.
Rust added the results demonstrated the resilience of the market.
Report by Steve Jones
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