Rising global hotel demand with competitive costs
With the global pandemic showing signs of abating, the collective hospitality industry is reaping the rewards, as travelers board the plane or hit the road for a well-deserved break from work – from the monotony at home and the restlessness. Netflix overload. The hospitality industry is happy to welcome them back, but a continued decline in revenue – with the product of some segments still not coming back with enthusiasm, such as businesses and groups – complemented by increased spending and a labor market. too difficult, have consequences on the bottom line.
As the global pandemic shows signs of abating, the collective hospitality industry is reaping the rewards, as travelers board the plane or hit the road for a well-deserved break from work – from home monotony and drowsiness. Netflix overload. The hospitality industry is happy to welcome them back, but a continued decline in revenue – with the product of some segments still not coming back with enthusiasm, such as businesses and groups – complemented by increased spending and a labor market. too difficult, got on the bottom line.
The American push
Here is a statistic: on June 25, 2021, 2,137,584 people passed through American airports, according to the TSA, a number which represented 78% of the total on June 25, 2019 and 237% more than on June 25, 2020. People are moving again, which means they are staying in hotels again.
In the United States, where many states and municipalities continue to ease COVID protocols, revenues continued to rise in May, with RevPAR up 539% from the same period a year ago, but still 51% lower than in May 2019. With room revenues supported by the leisure segment, total revenues followed suit, up to $ 127 per available room, an increase of 541% over the same period one year ago.
Labor costs have risen by nearly $ 20 per available room since last May, a cost that is expected to continue to rise as hoteliers find they have to shell out more and add incentives to attract employees who are either still reluctant to return to hospitality jobs or have changed careers. paths.
Gross operating performance per available room reached $ 40.55 in May, an increase of 319% from the same period a year ago, but 63% lower than in May 2019.
Europe still blocked
European hotels lag behind other regions as many countries continue to enforce regulations preventing return travel. In May, hotels were only able to muster the TRevPAR of $ 49.83, which led to an almost break-even GOPPAR of € 2.52 which, although extremely low, was actually the first month. positive profit for the region since September 2020.
Total labor costs for the month reached € 23.76, 46.8% higher than the same period a year ago, and only € 6 lower than total room RevPAR .
Steady rise in APAC
In Asia-Pacific, the high number of domestic trips has a profound impact on the region’s hotel performance. RevPAR for the month hit $ 59.07, up 141% from the same time a year ago. It was supported by an occupancy rate of nearly 50% and a rising ADR, which hit $ 118 on the month. The TRevPAR of $ 106.39 was the product of a continued increase in ancillary income, with F&B RevPAR reaching $ 40.77 in May, up 152% from the same period a year ago.
Overhead, which, at $ 30.26 per available room, increased 44.9% from the same period a year ago and $ 12 lower than in May 2019, but still less than half of May 2019.
Middle East on the brand
Like APAC, the Middle East is seeing a nice rebound thanks to higher rates and rising occupancy. The RevPAR for the month was recorded at $ 76.57, an increase of 222% over the previous year, resulting in a TRevPAR of $ 120.88, an increase of 228% over the previous year. at the same time a year ago.
Meanwhile, as labor costs remain stable, at just under $ 40 per available room, GOPPAR hit $ 37.29 in the month, 430% higher than the same. period a year ago. The Middle East has now recorded 10 consecutive months of positive profits.
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