HVS and the Federation of Hotel & Restaurant Associations of India released the 13th annual Indian Hotel Industry Survey.
Among the key findings, the average occupancy across India declined by approximately 3%, with some cities witnessing declines of up to 15%, reflecting decreased travel by corporations, re-negotiation of corporate contracts and decreased leisure travel. However, the average rates witnessed an increase of approximately 8%.
The increase in departmental and fixed expenses as a percentage of revenue, coupled with a decrease in top-lines, led to a decline in net income percentages of approximately 11% in 2009-10 over 2008-09. The amount-per-available-room increase in property operations and maintenance costs, along with the amount-per-occupied-room increase in F&B expenses, is responsible for the reduction in bottom lines.
With the rising operating and manpower costs in hotels, several hotel managers and operators have opted for outsourcing services such as laundry, housekeeping and F&B outlets. The reasons for choosing outsourcing range from saving costs (especially for small properties where the inventory does not permit efficiencies of scale) to decreased financial risk when the services are operated on a profit-sharing basis.
Travelers who choose to spend the night of 31 December in a major European capital can expect to begin 2011 with a much lighter wallet. Trivago analyzed hotel prices for three weekends in December: New Year’s Eve, Christmas Eve and a weekend in the middle of December (17-18 December). The results show that while rates remain steady both before and during Christmas, when people tend to follow tradition and celebrate at home, prices spike dramatically on 31 December, when the appeal of celebrating in a vibrant capital city is much stronger.
In London, average overnight rates for 17 to 18 December were £110 (US$170). On 24 December, they dropped to £88 (US$136), only to surge 110% on 31 December to an annual high of £184 (US$284). In Paris, rates for 17 and 24 December also remained stable at £101 (US$156) and £98 (US$151) respectively, only to peak sharply on the New Year’s Eve weekend. The French capital shows an average of £178 (US$275), or 78% more than during the Christmas weekend.
Wynn Resorts Limited today confirmed Chairman and CEO Steve Wynn is involved with a new joint venture with Monaco QD International Hotels and Resorts Management, reports the Las Vegas Sun.
"Mr. Wynn is honored to be involved with the Principality of Monaco in the new joint venture," Wynn Resorts said in a statement today. "He greatly enjoys his long friendship with the principality, which dates back almost 30 years. He is proud to be a part of the community in Monaco and the joint venture. Mr. Wynn looks forward to further developing both relationships."
Monaco QD International Hotels and Resorts is a joint venture between the governments of Monaco and Qatar, formed in August 2010 to acquire and manage hotels and resorts in Europe, the Middle East and North America.
Accor said it will hire 3,000 people in India by next year to fill vacancies being created at its upcoming hotels in the country, according to an Economic Times story.
Accor currently operates eight hotels under brands Novotel, Ibis and Mercure, and two convention centers that employ about 2,000 people.
"By the end of 2011, we will employ total 5,000 people at Accor operated properties across India," said Accor Hotels India regional director of human resources Ashwin A Shirali.
About 30% of the jobs will be entry level, he said. The company plans to operate 10 new properties in 2011.
The anticipated recovery in Irish tourism did not materialize in 2010, according to the Irish Tourist Industry Confederation in its Year-End Review and Outlook for 2011.
More than 1 million, or 16%, fewer overseas visitors came compared with 2009, with total arrivals at an estimated 5.5 million. That is 2.2 million fewer visitors than the peak year of 2007, a level last seen in 1998. Ireland’s largest source market, Britain, accounted for 1.3 million of those lost visitors. Earnings from overseas visitors contracted by one-third during the past three years, with annual revenue now €1.7 billion (US$2.23 billion) less than in 2007.
The domestic market performed reasonably well, with just a marginal drop in visits, although domestic revenue is estimated to have fallen by 10% to €1.25 billion (US$1.64 billion), the ITIC said.
Compiled by Stacey Higgins.