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Latest News

Monday, June 29, 2015

How profitable will RevPAR growth be in 2015?

Like other industries, profits in the hotel business are achieved when revenues exceed the cost of operations and in 2015, there are several factors that will enhance the ability of hotel managers to control their operating expenses.

According to Moody’s Analytics, the pace of inflation is forecast to be a mere 0.6 percent. This will help curb the growth in the cost of the goods and services purchased by hotels, including utilities.  In the March 2015 edition of Hotel Horizons®, PKF Hospitality Research (PKF-HR), a CBRE Company, is forecasting occupancy to increase by 1.9 percent in 2015. This is less than that 3.6 percent pace of occupancy growth reported STR, Inc. in 2014. A deceleration in the increase of occupied rooms leads to a slowdown in the growth of variable expenses.  While the national unemployment rate is declining, wage rates are still projected to grow at a relatively modest pace. Read More »

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Hotel Blog

Monday, June 29, 2015

Cutting tourism VAT could provide £20bn boost to UK

The campaign to Cut Tourism VAT has placed renewed pressure on the government after a study revealed that lowering the tax could be worth £20bn to the UK.
According to a report by Nevin Associates, cutting the rate of tourism VAT from 20 to five per cent would reduce the UK’s Balance of Trade deficit by £632m in year one, £1.1bn in year two, £1.5bn in year three and £20.1bn over 10 years, at 2015 prices. Read More »

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Booking Tips

Utilise stay restrictions (available for use at rate and room level) to your advantage.  E.g. Your promotional rate could be set up with a minimum stay of 3 nights during August for example, to increase revenue during busy months. Or you can close your cheapest rates during trade fairs so that only your highest rates are available.

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