Hotel Owner May 2019 | Page 9

MONTH IN REVIEW GO ONLINE www.hotelowner.co.uk HOTEL NEWS Guest ratings more important than brand value, report finds Price and guest ratings carry more weight than brand value as key attributes to hotel property selection, according to a new study of more than 900 consumers by Expedia Group. Expedia found that price was “by far” the most influential driver of hotel selection, as consumers “prioritise value above all else” when allocating their travel budgets. Promotions and discounts that represent a real value to the customer is an almost guaranteed way to get hotel shoppers’ attention and have them select a property. Guest ratings were also found to have a strong influence on consumer selection, with a 72% chance that any consumer will value guest ratings higher than hotel brand. According to the study, consumers are willing to pay more for higher guest reviews, and “considerably more so than for more premium brands”. Participants overall were willing to pay more for a hotel with higher guest ratings: 24% for a 3.9 rated hotel versus a 3.4 rated hotel, and 35% for a 4.4 rated hotel versus a 3.9 rated hotel. However, the study found hotel brand did carry a slight advantage over other attributes, including remodel callouts, room image and star ratings. Premium brands showed more influence on selection, with shoppers rewarding those brands with some ADR premium, however Expedia added this was“not nearly to the extent that superb guest ratings do”. HOTEL BRANDS Royal Crescent Hotel joins Pride of Britain Hotels as 50th member For the first time in its 37-year history, Pride of Britain Hotels has reached its self-imposed limit of 50 hotels, with the introduction of The Royal Crescent Hotel and Spa in Bath, into its collection of luxury independently- owned hotels. According to the hotel consortium, the property is an “iconic” example of Georgian architecture, and each of the 45 individually-designed bedrooms and suites features “spectacular views” of either Royal Crescent lawns or the hotel’s secluded gardens. General manager, Jonathan Stapleton said: “We are so pleased to be joining such a well-established and respected brand, which represents some of the most prestigious properties in the UK.” Peter Hancock, CEO of Pride of Britain Hotels, added: “We are delighted to welcome The Royal Crescent Hotel and Spa into our collection of independent properties around the UK. With its outstanding architecture and fine location in the centre of Bath, it adds greatly to Pride of Britain’s offering, which now spans 50 amazing places to experience the very best of British hospitality.” While consumers want the best deal on travel bookings, their individual selections ultimately reflect their values Abhijit Pal, head of research, Expedia Group May 2019 1 2 3 4 5 6 7 HOTEL CONSORTIUMS Easyhotel sales jump 24% in H1 results Budget hotel brand Easyhotel has reported a 24% increase in total system sales to £19.9m for the six months ending 31 March 2019. Revenue increased by 47% to £7m during the period, compared with £4.8m the previous year, and owned hotels like-for-like RevPAR was up 5.4%. However, franchise like-for-like RevPAR decreased by 3.5%. The group said that “despite the ongoing political and economic uncertainty facing the UK”, it continued to “outperform” its hotel markets in the UK and across Europe during the period. However, looking across the wider hotel market, falling consumer confidence “dampened” total hotel demand, with RevPAR up 0.4% during the period. Market demand in London was off-set by a weaker regional market performance, with a marked deterioration in RevPAR across the UK in Q2 as compared with Q1. Additionally, the group’s European franchised hotels performed less strongly than those in the UK, despite European hotel markets generally outperforming the UK. CEO Guy Parsons said: “Ongoing political and economic uncertainty continues to impact consumer confidence as demonstrated by weakening quarter-on-quarter demand across the market, both in the UK and in Europe.” www.hotelowner.co.uk 9