8 out of 10 hotel companies expect increased demand for their services six months’ from now. This clearly points to an expected recovery in the industry during the autumn. However, one should bear in mind that these expectations of growth come from a very low base, as hotel demand fell to record lows during the past 12 months.
The increasingly positive view of future demand is evidently reflected by expectations of higher rates for hotel services. Indeed, over the forthcoming three months 4 out of 10 expect rates to increase whilst only 1 of 10 hotel companies expect rates to fall.
As a result of continued restricted demand and depressed rates during the first quarter, almost all hotel companies state that their profitability is meagre. The continued reduction in the number of people employed by the industry means that there is no shortage of staff available to hotel companies.
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