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Egypt Holidays > Travel News > Weak pound and economic gloom equal cheaper hotel rooms
Weak pound and economic gloom equal cheaper hotel rooms | | 2nd July 2008 |
Hotels around Europe have started to lower prices for the summer holiday season in an attempt to draw in customers who are shying away from travel due to increased airfares and the widespread economic downturn.
HotelConnect, an online accommodation provider, has said that 50% of its hotels are reducing their prices by 10-15% during July and August.
The price reductions come as occupancy levels are falling in hotels throughout Europe, with holidaymakers opting for UK or destinations outside the euro zone, such as Egypt and Turkey.
HotelConnect's sales figures are showing that destinations outside the euro zone are experiencing strong growth, with Krakow up by 20% and Budapest up by 33%. Euro zone destination hotels, however, have slipped, with Rome down by 12% and Amsterdam down by 18%.
Ian Ackland, commercial manager for HotelConnect said: “Thankfully, some hotels are beginning to realise the impact the euro is having on occupancy levels. These rate reductions are absolutely necessary to keep people coming to Europe.”
The online operator's hotel partners are being encouraged to reduce prices for both the summer and fall, as European destinations continue to suffer from falling occupancy levels.
Ackland noted: “Our message to hotels is this - relying on dumping inventory at the last minute could now cost you more on the bottom line. It won't be a case of selling a small amount of inventory at the last minute as there will be too much to shift at late notice.”
He added further: “City hotels are only looking eight to 10 weeks ahead. With no improvement in the exchange rate or economy in sight, savvy hoteliers must look three months or more ahead - and act now.” |
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