PwC say UK hotel industry over the worst
28/09/2009
Last week Pricewaterhouse Coopers (PwC) announced that the UK hotel industry may be past the worst of the recession and could be heading towards recovery in late 2010.
Recent research figures from the firm will be welcome news to investors or those seeking employment in the sector as they predict the revenue per available room (RevPAR) decline will slow early next year.
PwC estimated that RevPAR would decline 12.1 per cent in total this year before slowing to a 2.4 per cent decline in 2010.
Robert Milburn, UK hospitality and leisure leader at PwC reported that room rates had become the "sacrificial lamb" in the battle for occupancy and keeping them low will continue make it easier to attract last-minute custom.
"It is a delicate balance and we are not out of the woods yet but, as the economy starts to stabilise, the path has at least become clearer," he added.
Additional research by those in the hotel technology provider sector suggest that budget hotels are still best-placed to withstand the economic downturn, with a over a quarter of holidaymakers saying that these hotels now offered an improved and better experience.