Tourism Industry News
Hotels in Phuket lose USD 300 million in room revenue in 2009
According to a report in 4hoteliers.com, industry-wide discounting by Phuket hotels cost the industry in Phuket USD 300 million in room revenue in 2009, as per the Phuket Hotel Market Update report. Room rate cuts averaged 20 per cent across the board last year, leading to the loss compared to 2008 room revenue. Despite tourism arrivals rebounding back to 2007 levels, a key blow to fundamental hotel metrics hit profit margins.
Bill Barnett, Managing Director, C9 Hotelworks, author of the report, mentioned that the 2 P's - Pricing and Pool Villas - represented dynamic drivers as average room rates and revenue available per room (RevPAR) declined.
“Bottom lines have been hit as hoteliers scrambled to induce demand and meet increasing consumer pressure for lower rates. Virtually every chain scale tier was affected with the exception of the budget and economy segment,” added Barnett.
Get the full story at: Hospitality Biz India
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