Independent hotels in the UK recorded a spike in RevPAR (revenue per available room) over the Easter weekend, measuring £121 on 8 April 2023 – the highest figure recorded in the UK this year. This according to new data from hotel management system RoomRaccoon
The figure comes as a result of increased occupancy and ADR (average daily rate) over the four-day period. Hotels reported a 7% increase in occupancy rate, averaging 58% (peaking at 70%), as well as a 5% increase in ADR, averaging £151, in comparison to the holiday season in 2022.
Commenting on the data and the industry’s recovery, Ed Kerr, Market Head of RoomRaccoon UK and Ireland, says: “The data reflects that hotels are generating better revenue for their spaces by capitalising on high occupancy rates over the holiday season. However, the increase in ADR can indicate the need to compensate for inflation and rising operational costs in 2023.”
Ed recommends that hotels pay close attention to market data to capture demand and maximise revenue despite uncertain economic times: “Selling time-limited inventory like hotel rooms at a fixed price year-round is a common mistake that costs hotel operators thousands in lost revenue. This is something that hotels simply cannot afford in today’s economic climate.”
“Our data show that hotels that use two or more yield management rules can increase their RevPAR by more than 14%. With dynamic pricing tools, like RoomRaccoon’s yield manager, hotels can remain competitive, and save valuable time with automatic rate updates that maximise revenue according to demand,” says Ed Kerr.