PKF Hotel Consultancy Services has released preliminary monthly figures that show that the room rates, occupancy levels, and room yields for hotels in the United Kingdom declined again during the Christmas season. Room rates have dropped to £138.03 by 0.9% in comparison to £139.33 in 2007, and occupancy levels are reported to have slumped by 1.2% compared to 2007. Together, this results in a 2.1% decline in room yield to £99.89 from £102.07 in 2007.

On one hand, the figures for London hotels have actually increased, with room yield rising by 2.7% to £117.19 from £114.08 in 2007. This was mainly due to a room rate increase by 4.6%. Across the rest of the United Kingdom, however, there was an 11.6% decline compared to December of 2007, combining a drop in occupancy levels by 9.4% and a decline in room rates to £71.42 in comparison from £73.20 for 2007.

Robert Barnard, a PKF Hotel Consultancy Services partner, said that the decline that hoteliers experienced in December isn’t a surprise when the current economic climate is considered. While families in the United Kingdom would have usually chosen to travel during Christmas, along with families from overseas, he continued, this year many have opted to stay home in order to same money prior to a tougher year.

Furthermore, Barnard said, business travel usually declines during December, and this was cut even further due to businesses trying to cut expenses. Looking ahead, the weak pound could bring more tourists to the United Kingdom, he continued, but this year will be harder for hoteliers as a whole.

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This entry was posted on Tuesday, January 27th, 2009 at 10:13 am and is filed under UK News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.