The Caterer

Gate Gourmet strikes good business for Heathrow hotels

29 September 2005
Gate Gourmet strikes good business for Heathrow hotels

Strikes by Gate Gourmet staff and British Airways baggage handlers meant a bumper August for hoteliers in and around Heathrow airport.

The subsequent flight disruption stranded about 70,000 passengers and helped Heathrow hotels report a 50% increase in revenue per available room (revpar) compared with last year.

Deloitte's HotelBenchMark Survey found August revpar at Heathrow hotels increased 5.1% year-on-year to £51 as a result.

At the same time, revpar plummeted 11% to £64 in the capital as visitors shunned London after the July terror attacks.

Although the dispute between Gate Gourmet and the unions representing its employees appears to be over, Deloitte said Heathrow hoteliers can look forward to increasing business as the airport is expanded with the opening of terminal five in 2008.

By Chris Druce

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