Hope for recovery: hotels see a 75% increase in post-pandemic revenues
Profitroom, a business that delivers direct booking expertise through cloud-based SaaS technology, has found that UK hotels have seen a 75% increase in average revenues when compared against pre-pandemic levels, suggesting that there is hope for the industry’s long-term recovery.
According to revenue data accumulated between 1 January 2021 and 19 May 2021, which was then compared against data from the same period in 2019, hotels have seen an increase in average revenue of 75%.
The data was taken from the UK hotels within Profitroom’s 3,500 worldwide hotel database, which is predominantly made up of 4-star and 5-star properties.
The data also reported that ‘packages’, which constitute a booking that includes more than a bed and breakfast deal, such as spa treatments, afternoon tea and activities, have also increased over the period. The data from 2019 reported 23% of all hotel bookings were ‘packages’, whereas, in 2021, this had increased significantly, with 32% of hotel bookings now falling within the bracket of a package, suggesting guests are now looking for more than an overnight stay.
Samantha Williams, director of business development at Profitroom, said: “Given the restrictions at the start of the year the volume of bookings for 2021 is greatly reduced, however hoteliers can take enormous confidence from the fact that like-for-like revenues are up, meaning hotels are generating more from bookings.
“Since the pandemic started, with hotels off limits for long periods, we have seen people looking to spend more per booking. Although you could assume it is a short-term trend driven by people simply looking to do more following weeks of lockdown, we don’t believe this is the case. We are seeing longer term trends that indicate people require more and expect more from a hotel stay and are simply willing to pay more to get that, something that’s good news for hoteliers looking to maximise revenues.”
Williams added: “To help with their recovery, hotels should be marketing themselves accordingly to tap into these expectations. Guests now respond to ‘the experience’, so it is important you sell this element when looking to promote your hotels rather than simply looking to offer the most cost-effective overnight accommodation. By providing packages that really make a hotel stay with you worthwhile and an experience to savour, you’ll be appealing to those with more money to spend.”
“Our data suggests that hotels benefit most by offering a range of packages to choose from, with the optimum number being between five and seven according to our analysis. So, for instance, you might want to offer an overnight stay with afternoon tea, a spa weekend with an inclusive treatment, or even partner with local businesses to offer more unique packages such as inclusive tickets to nearby tourist attractions as part of an offer. The more diverse the better, as it allows you to appeal to a broader share of the consumer market.”