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Glasgow 2014 Helped Hotel Rates Rise

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Glasgow hotels enjoyed a big lift in room rates during July, helped by the Commonwealth Games.

However, there are signs that summer tourism was slightly disrupted elsewhere, as occupancy rates fell.

Latest analysis of three and four-star hotels’ performance showed Glasgow’s “room yield” – the main industry measure – was up from £45.31 to £78.53.

Edinburgh remained more lucrative per room, at £81.86, though that was a decline of 1.5% on July 2013.

The occupancy rate in the capital also fell by 4.8%.

Edinburgh has the second highest room yield of all the UK cities measured, after Oxford.

Aberdeen’s revenue measure, which tends to reflect activity in the offshore energy industry, rose by 7.8% to £75.27, while occupancy was down 2.1%.

In Inverness, there was a drop in room yield of 4.6% to £56.53, and its occupancy rate also fell.

Alastair Rae, of business advisers BDO, which compiles the monthly data, said: “There was a fantastic Commonwealth Games effect on Glasgow’s occupancy and, more importantly, its revenue levels.

“There may have been some fallout from the Games with Inverness suffering a drop in both occupancy and revenue with the leisure market perhaps unwilling to travel outside the central belt.

“Aberdeen’s hotels continue to benefit from the oil industry but it will be interesting to see if this is maintained as the oil price continues its downward trend.”

He suggested that while revenue remained strong relative to other parts of Britain, the fall in occupancy pointed to prices having peaked.

The Commonwealth Games in Glasgow opened on 23 July and the closing ceremony was on 3 August.

Source: BBC

 

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