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Budget sector ‘held its ground’
The budget hotel sector is out-performing more expensive hotels in the UK and Europe.
Occupancy rates in budget hotels in the UK and Europe were higher during September than their mid-market, first class, and luxury competitors, according to a recent survey from Deloitte and Touche.
The survey reported occupancy rates of 63 percent in budget hotels in Europe during September 2002, which was marginally higher than rates in more expensive hotels.
In the UK this trend was more exaggerated, with budget hotels recording occupancy rates of 73 percent, up five percent since January 2000. The other, more expensive sectors have all experienced decreases in occupancy rates since January 2000. Non has been so obvious as the luxury sector, where UK occupancy has fallen 15 percent since January 2000 to 63 percent in September 2002.
Deloitte and Touche director travel, tourism and leisure, Julia Felton says the success of budget hotels is down to economising by business travellers, and a reduction in air travel. According to Ms Felton this has lead to more travel by road and rail, and budget hotels are well located to cater for these travellers.
Ms Felton told TravelMole: “It is more a fact that budget hotels have held their ground while the others have fallen around them”.
The survey computes the occupancy rates on a rolling 12-month basis to mitigate the impact of seasonality and events such as 11 September.
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