Can the Chancellor help boost hotel occupancy?

By Peter Ruddick

- Last updated on GMT

Related tags: Hotel

The Chancellor will deliver his Budget on Wednesday - the hotel industry will be hoping his measures will improve consumer and business confidence
The Chancellor will deliver his Budget on Wednesday - the hotel industry will be hoping his measures will improve consumer and business confidence
Hotels which engaged in discounting managed to increase occupancy in February but action from the Chancellor in Wednesday's Budget could help improve the situation further, according to a new report released by PKF Hotel & Hospitality Consultancy Services.

The consultancy firm said occupancy in London jumped from 74.7 per cent to 78.4 per cent last month, while in the regions a 10.9 per cent rise compared to a year ago saw occupancy levels reach 71.7 per cent.

Govinda Singh, director for hotel and hospitality consultancy services at PKF, said discount and offer packages had tempted people through the doors.

“"This type of skilful revenue management can be an effective stop gap measure but it’s not going to provide a longer term solution to the challenges facing the hotel sector. I’m sure that the industry will be urging the Chancellor to use his Budget to introduce measures to kick-start the economy and help strengthen business and consumer confidence.

“"Measures tailored specifically at the hotel and hospitality sector – such as a potential reduction in the rate of VAT on labour intensive services like catering –will also be welcomed and could provide a much-needed boost to the industry’s top line."

Average room rates fell in both London and the provinces last month resulting in a drop in RevPAR in the capital and a slight rise elsewhere.

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