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Wednesday, July 22, 2015

MP's to lobby for cut in tourism VAT

The British Hospitality Association (BHA) is increasing pressure on the government to cut the rate of tourism VAT by establishing a cross party parliamentary group of MP's to build momentum for the bill.

The All-Party Parliamentary Group (APPG) on the Visitor Economy will be chaired by Nigel Huddleston, Conservative MP for Mid Worcestershire and Margaret Ritchie, the Social Democrat and Labor MP for South Down in Northern Ireland.

It will also promote measures to drive visitor number and investment across regional economies in Britain and Northern Ireland.

To see the full article click below:  Read More »

Friday, July 03, 2015

Expedia amends rate-parity clauses

1 July 2015 – The Expedia group (Expedia) today announced that it intends to waive certain clauses in its agreements with its European hotel partners.

A number of European competition authorities are currently investigating rate, conditions and availability parity clauses in certain online travel agency agreements with hotels. Expedia has worked closely and constructively with these authorities and the European Commission and today announced that it is waiving its rate, conditions and availability parity clauses with its hotel partners for a period of five years in line with Clauses 1.1, 1.2 and 2.1 of the formal commitments offered by Booking.com and accepted by the national competition authorities in France, Italy and Sweden in April 2015. The changes announced today apply to all hotel properties in Europe and affect consumers booking via Expedia’s sites worldwide. Read More »

Wednesday, July 01, 2015

Booking.com alarmed by France's new hotel rate parity plans

On June 16th, France’s national assembly adopted a new bill that is up for a final vote on July 14th and has the potential to reshuffle the cards on how Booking.com and Expedia partner with hotels.
The so called Macron bill - named after French Minister of the Economy Emmanuel Macron - prohibits OTAs from including any parity clauses at all in their agreements with hotels, and gives hoteliers the full pricing freedom - including offering lower rates on their own websites.

If accepted, the bill will basically render all current OTA hotel agreements in France invalid as early as August this year, and puts and end to hotel rate parity as we know it.

New agreements between OTAs and hotels will have to be formulated in a way that allow hotels to offer lower rates in any of their sales channels, including their own website.

 Read More »

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 »

Tuesday, June 23, 2015

French parliament kills rate parity, and Booking predicts hotel price war

On Thursday, the French National Assembly moved to cancel rate parity clauses in contracts between hotels and online travel agencies (OTAs). Violators will be fined up to Euro 150,000. The next step is for a council minister to fix the practical details and for the regulation to go into effect. That may take months.  Read More »