Andy Storey, MD Europe for Rubicon, shares more predictions for the hotel market in 2011.
"The good news is that, despite uncertainty over the economy, confidence in the hospitality sector seems to be riding high.
It is impossible to forget the countdown to the London Olympics 2012. Looking at bookings in London for July 2011 – exactly a year ahead of the event – demand is up on 2010 by 32%. Despite this increase in committed occupancy, summer hotel rates are down 6.9%, giving travellers the chance to check out London before the international attention next summer.
The recent UK VAT increase to 20% has done little to dent demand so far. While hotel average daily rates for January have risen considerably, demand in the group market has also risen. This year-over-year increase in demand indicates that guests feel they are willing to pay these raised prices – so much for cutting back due to the recession!
Unless you have been living under a stone, you will be aware that the much anticipated Royal Wedding is taking place in London on 29 April. With three months to go, committed occupancy is up a staggering 166% compared to the same time last year, so rooms are selling out fast as visitors seek to guarantee their place in the crowds. We’re planning to look at whether people are going to be using this opportunity to extend their stay in the capital and where the influx of visitors are coming from – my money is on the US.
2010 proved a difficult year for hotels within the Eurozone, but looking forward to April 2011, occupancy is in fact up in a number of major cities. Committed occupancy in Amsterdam is up nearly 50%, Paris by 33% and London 45% year-over-year. There are some great prices to be had too – with major cities including Brussels, Frankfurt and Munich offering lower rates than in 2010. Now is the time to get booking your spring breaks!"
