The past is rarely a good guide to the future but it is sure is better than no guide.
This HotStats analysis is definitely worth a few minutes of your time if you or your clients have any involvement in the UK and European hotel industry. The attached analyses RevPAR and other KPI delving deep into the hotel proﬁt and loss statement to investigate how the hotel market has evolved. The performance of hotels across Europe is analysed over a ten-year period to evaluate the shifting revenue, cost and proﬁt proﬁle of full-service hotels in key markets. The publication highlights the growing dependence of European hoteliers on third party booking agents, changing demand booking proﬁles and the impact of the escalating cost of labour on proﬁt levels.
I have been actively involved in the UK, Irish and Spanish markets amongst others during this time and can attest to the transformation in the profitability of hotels.
It's nine years ago since Lehman Brothers filed for Chapter 11 - so we are at the end of a decade-long period of change (I nearly wrote austerity but that's too political a word these days I guess). In 2007, booking.com emerged and has quickly become the dominant channel to demand. That same year, 2007, AirBnB was created and with it the sharing economy. Arguably these three events alone have more than anything else shaped our global industry. The P&L of our industry, shown in this report, clearly shows the impact.
Which three events will shape the next decade? The answer is in your hands unless you let others drive it!
The trends in non-rooms revenue shouldn't surprise anyone given the changes in where hotels are sourcing their bookings from. Hoteliers are having to come to terms with ever more cost aware visitors who are practiced in finding the best bargains. It's to be expected that guests retain this approach once their visit has started.
Some interesting stuff on payroll costs on p7 - the Paris/Amsterdam comparison in particular. Is the UK busy throwing away one of its key advantages here?