From January to April 2023, hotels in the UK recorded a rise of 23% in Revenue Per Available Room (RevPAR) compared to the same period in 2022.
(BREDA) 7 June 2023. Despite ongoing global macroeconomic uncertainty, independent hotels in the UK have posted strong levels of recovery thus far in 2023, out-pacing 2022 performance indicators. This is according to the latest data from hotel management tech solution RoomRaccoon which monitored key performance metrics from over 2000 rooms in boutique hotels, B&Bs and guesthouses across the region.
Hotel revenue per available room (RevPAR), the standard metric for measuring top-line performance, averaged £53 between the months of January and April this year, a measurement 23% higher than the same time in 2022. Furthermore, the long weekend at the start of May saw RevPAR peak at £124 on Saturday, 29 April – the highest volume recorded by hotel management software company, RoomRaccoon since it launched its UK division in 2019.
RoomRaccoon RevPAR performance in the UK
This jump in RevPAR performance is driven by an increase in both occupancy and average daily rate. According to RoomRaccoon’s data, hotel occupancy recorded between January and April increased from 39% in 2022 to 43% in 2023, while ADR grew from £110 in 2022 to £123 in 2023.
Commenting on the data, the Market Head of RoomRaccoon UK, Ed Kerr says: “Although inflation and rising operating costs have had a substantial impact on industry rates, the rise in ADR is also indicative of hotels capitalising on sustained travel demand in 2023.”
Ed cautions that with higher room rates come increased guest expectations. “To provide that extra touch of hospitality, hoteliers can leverage customer data in their PMS to identify patterns, preferences, and trends, and create a more tailored experience for guests. This will help avoid a drop in guest satisfaction due to increased costs.”