Profitroom reveals 75 per cent increase in revenues for UK hotels

Profitroom reveals UK hotels have witnessed 75 per cent increase in revenues

[Credit: Robert Parker Collection]

UK: Data from Profitroom between 1 January 2021 and 19 May 2021 reveals that hotels in the United Kingdom have seen an average increase in revenue of 75 per cent compared to the same period last year.

More than 100 hotels were analysed, all of which use Profitroom’s services.

The data shows that package bookings – constituting a booking which includes additional actives such as spa treatments and afternoon tea – have also increased by nine per cent compared to 2019. 32 per cent of hotel bookings are falling within the bracket of a package.

Samantha Willians, director of business development at Profitroom, said: “Of course, 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’ve seen people looking to spend more per booking. Although you could assume it’s 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’re 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 continued: “To help with their recovery, hotels should be marketing themselves accordingly to tap into these expectations. Guests now respond to ‘the experience’ – so it’s 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,” she added. “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.”

Profitroom has a worldwide database of 3,500 hotels, predominantly made up of four and five star properties.

Samantha Williams featured in the Trailblazer webinar Ready, set, go: Maximising bookings. You can watch the recording here.

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