European hotels under pressure again
After showing signs of stability during the first six months of 2002, the European hotel industry again came under pressure during the third quarter of the year, says American Express.
Its European Corporate Travel Index, which monitors published room rates in major cities, showed room rates falling by up to 2.2% during the three months to the end of September. The first six months of 2002 saw modest increases in most markets.
American Express blames falling occupancy levels for stifling the recovery in room rates.
"After showing defiance in the face of tough market conditions in the first half of the year, Western Europe hotels have remained stable," said Hans Lindh, head of hotel industry at the credit card company's Establishment Services Group. "But fragile occupancy rates in the third quarter are starting to take their toll."
But figures for the last 12 months as a whole are still positive, with upmarket hotels showing a 3.1% increase in rates, mid-market hotels a 3.8% increase and lower-end hotels a 4.1% increase.
Upper-range hotels in the UK have dropped their rates by 1.4% over the third quarter and by 0.6% over the last 12 months. Lower-range rates dropped by 1.4% over the quarter and 0.3% over the year.
