UK Hotels see small improvement

by Jessica MCILHINNEY on October 6, 2009

The global economy has teamed with the outbreak of the swine flu virus to put a large dent in the travel and tourism industry.  Hotels, car rental, resorts, and other businesses associated with travel have seen their numbers drop dramatically over the last two years.  The United Kingdom hotel industry has been hit particularly hard, as many around the UK chose to stay home instead of taking holidays.  Even though the industry is slumping, there are some indicators that it is starting to turn around.  Signs are beginning to point to some relief for the hotel industry, and the tourism industry at large.

As of August 2009, there are some signs that the market decline of the hotel industry is beginning to slow.  HotelCompSet, which is a company that monitors the hotel and hospitality industry, found that hotels were now enjoying an occupancy rate of over seventy percent.  Although this is still less than during the same time period last year, it still represents a higher percentage than the beginning of 2009.  Revenue per room was also on the rise compared to earlier this year, which is an encouraging sign for hoteliers.

It is expected that tourism in the United Kingdom will grow in the final quarter of 2009 as consumers and businesses start to regain confidence and spend again.  Loss of business revenue has been particularly damaging to the hotel industry, as businesses often spend additional money on things like conference rooms and room service.

Industry insiders also believe that the declining value of the British pound will also drive more customers to UK hotels, as it has become increasingly less expensive for travelers outside of the UK.

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