Hospitality data group HVS has warned that despite positive global and EU economic growth, the New Year is likely to be a challenging one for for UK hotel operators due to a combination of flat occupancy levels, wages going up, staff shortages, increasing food and utility costs and the impact of higher property taxes and business rates, as well as a strong pipeline of new hotels.

However, ADR and RevPAR are predicted to rise by an anticipated 5% in London and 3% in the regions.

To combat the situation, hoteliers will have to focus on service and quality and encourage direct bookings instead of using costly OTAs.

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