London has emerged as the top European market in revenue per available room (RevPAR) for 2006, according to a report. (1/15/2007)
According to KPMG and global benchmarking provider The Bench, London achieved a RevPAR of EUR166.63, up 18.49 percent on last year. This was driven by an average room rate (ARR) of EUR205.30 and occupancy of 81.7 percent.
London was closely followed by Moscow, boasting the highest ARR at EUR222.53 ranking second in absolute RevPAR (EUR161.78), up 15.1 percent on last year. Dubai ranked third with an absolute RevPAR result of EUR156.03.
According to an official release, Amsterdam was second in absolute occupancy with an average of 80.2 percent, which, combined with an ARR of EUR129.96, brought the city to the fifth highest RevPAR of the year at EUR104.27. Rome was 13th in occupancy with a 74.7 percent but didn’t make it to the top 15 in ARR, which kept it in 14th place in the RevPAR ranking at EUR80.77. Dublin was a similar case, with a slight decrease in ARR (EUR122.45) and occupancy (77.7 percent), which brought a decrease of one place in the RevPAR ranking. Hamburg still shows in the lower places of the chart, however the city showed one of the highest increase from 2005, ending the year at ARR EUR105.84, occupancy 75.8 percent, and RevPAR EUR80.33 (an increase of 18.4 percent from the previous year).
Global figures for 2006 show improved performances worldwide with RevPAR growth in Europe rising by 11.61 percent; USA up 7.5 percent and Asia Pacific increasing by 20.12 percent.
Nick Pattie, director, KPMG’s travel, leisure and tourism practice said, “The continuing growth in 2006 RevPAR across all markets is impressive and has exceeded previous peak performances for some destinations. There is still headroom for further growth in many regions, especially Asia, although the slowing level of US growth may be an indicator of nearing the top of the cycle within the next couple of years. We see 2007 as maintaining a strong performance in Europe.”
James Chappell, managing director, The Bench, said “As seen in 2006, the US had a very respectable growth of 7.5 percent and Europe grew by 11.61 percent, but the outright winner and something we are going to have to get used to is Asia, which grew by a whopping 20.12 percent. Focusing on the UK markets, there was an impressive growth of 12 percent year-on-year, a combination of great market conditions and great revenue management. My advice for 2007 is more of the same, let’s all make hay while sun shines.”