Improved consumer confidence and a dry December have resulted in another bumper month as hoteliers across the UK saw double digit grow in rooms yield.
This is according to preliminary figures released today by business advisory and accountancy firm BDO, which found December room rate at hotels in the capital saw an 8.1% increase to £116.35.
Occupancy was also up to 79.8%, an increase of 4.5%. As a result, rooms yield grew by 13% when compared to the same period in 2013.
BDO reported a similar picture across the regions, where hotels outside London saw a 5.4% rise in occupancy to 66.7%. Average room rate was up 8.1% to £54.97, with rooms yield up 13.9% to £36.64.
It has been widely reported that consumer confidence in the UK is at a high, boding well for the wider economy in 2015. A recent study by Visit Britain predicts that 2015 will be a record year for the UK’s tourism industry.
Robert Barnard, partner at BDO LLP, said: “December can traditionally be a quiet month for hotels as corporate travel dies down, the UK receives fewer overseas visitors and hotel stays are generally combined with shopping trips, family visits and post-Christmas party convenience. It’s therefore encouraging to see strong figures for December this year.
“While the dry weather no doubt played a part, this can largely be put down to growing consumer confidence, coupled with falling energy and petrol prices resulting in low inflation.
“People are more confident with their personal finances, resulting in increased spend on travel and tourism. And with this trend is only expected to continue, hotel owners in London and in the regions can expect a bright outlook for 2015.”