Deloitte Says UK Hotel Industry Still Suffering

www.deloitte.com

The business advisory firm, Deloitte, says that the hotel industry is still suffering. This was seen during the first quarter of 2009, with a very sharp decline in both corporate and leisure travel. The report shows that UK cities all over have experienced this sharp decline in revenue per available room. In fact, the average drop has been about 9%, or 5 pounds per room.

Although it may seem like Deloitte had nothing but bad news to report, this is not true. Despite the big downturn in revenue per available room, the monthly decline in March, which was 5.2%, was a lot less than the 10.8% drop that was seen in February.

However, some say that this is not really good news. In fact, many experts point out that this may seem like good news on the outside, but stronger hotel performance was expected during this time frame. So although it shows improvement, it was not as much as what people were hoping for.

The Managing Partner at Deloitte, Marvin Rust, said that the weak pound was one factor that was playing a role in helping out London hotels compared to other UK hotels. For people who earn US dollars or even Euros, London is a lot less expensive than other UK destinations, and it has been for many years. People are starting to take advantage of this and staying in London hotels.

With more people staying in London hotels, the revenue per available room has been on a faster decline around the UK than in London.

For more information visit: www.deloitte.com