Global Hotel Market Shifting

This article summarises the 2006 results of the HotelBenchmark Global Ranking Index which compares, on an annual basis, hotel performances in terms of Revenue Per Available Room (RevPar), outside North America.

What comes out of those results is that room occuapancy is subject to loads of external factors. Indeed, Paris and Venice are the two top ranking cities mainly due to the fact that they market themselves as the world's romantic places. Also, other hotels in different European cities have achieved good performances thanks to the events that took place there. The best examples of those hotels are situated in Germany (with the World Cup) and in Turin (World Olympic Games). Further on, economic factors also boost hotel's RevPar, like in India or in China. Middle East hotels have also known a remarkable growth thanks to the buiding of numerous facilities such as airports, resorts, gulfs, etc...).

So what do those results mean in terms of Revenue Management?

When setting their prices, hotels should take into account what is happening in the environment in which they are operating. An event, a town marketing itself, economic growth, each and every one of them can influence the revenue of the hotel. Of course, one has to be careful. Here we have only mentionned positive influences on hotels activities; nevertheless, hotels should also pay attention to "negative factors".