Rough conditions may see European chains tighten restriction
Monday, January 05, 2009: Ever gloomier economic outlooks has seen many companies take advantage of hotel chains’ more flexible policies, and with more business being lost, a report says that the hospitality industry may have to begin looking at tighter restrictions.
Hotels will have to reconsider their cancelation and refund policies, says TRI Hospitality Consulting after analysing the stats from the latest HotStats survey they conducted.
“November was the first month that many companies implemented new restrictions on travel for their employees. For hoteliers, in addition to the trips not made, this also meant short-notice cancellations,” said Jonathan Langston, TRI Hospitality Consulting Managing Director.
“In many key markets, falls in occupancy have widened from August onwards and, unfortunately, any rapid reversal of this trend looks increasingly unlikely.”
Branded hotels in Amsterdam suffered the worst in November, reporting the greatest decrease in profit to EUR58.72 per room, a drop of 37.6% when compared to 2007.
Only three cities in the HotStats survey saw average occupancy lift above 70%, that of London, Hamburg and Paris, of the three, London reported the best occupancy levels at 81.5%.
London came second to Paris in terms of daily room rates, recording EUR150.13 to Paris’ EUR157.86 per available room.