HotStats: Omicron threatens recovery of hotel performance

0

Omicron, the latest variant of COVID-19, has already scared the markets and caused travel bans from some countries in southern Africa. While nascent, there is the reality and concern that the new tension could derail the nascent hospitality industry recovery, particularly if plans go ahead to tighten testing policies, as in the United States. United, according to HotStats.

Everything indicates that future hotel bookings, meetings and other hotel-related activities will be affected by the presumed expectation of future travel barriers, whether self-imposed, corporate or government imposed.

Middle Eastern Pop
Data for October, which only had to manage Delta, saw a striking resurgence in the Middle East, reinforced by Expo 2020 in Dubai, a 182-day World’s Fair that began in October and continues until in March.

The occupancy rate in Dubai was over 80%, higher than the same period in October 2019. The growth spilled over to all major metrics, ending with a RevPAR reaching $ 192, or $ 40 more than the same period in 2019.

Unsurprisingly, total revenue followed suit, with TRevPAR reaching $ 281, up 13% from October 2019. The boost: The increase in revenue was complemented by an still deflated cost base. The total payroll in Dubai was $ 45 per available room, down $ 14 from the same period in 2019. The combination of income and expenses led to gross operating profit per available room (GOPPAR) $ 150, a full $ 50. on October 2019.

The success in the UAE led the Middle East region to see a good rebound from GOPPAR. At $ 76, it was 5% higher than the same period in 2019 and 484% higher than in October 2020.

Stuck in the gear
Other parts of the world have not been able to replicate the success of Dubai and the wider Middle East. In the United States, the major indexes were still down double-digit in October 2021 compared to October 2019.

From a rapid increase in occupancy since the start of the year through the summer, peaking in July, the occupancy rate in the United States has since more or less stagnated, a sign that the boom in recreation could not be maintained at the same levels before.

Although much maligned, favorable data is surfacing in business travel. In October, business ADR was $ 7 higher than October 2019 and $ 35 higher than the month before. The mix of business volume, defined as the proportion of rooms sold at the corporate rate to the total number of rooms sold, has increased by 6 percentage points since July.

Overall, although the cost base in the United States remains broadly limited, revenues still lag behind 2019 levels, with TRevPAR down 30% in October compared to the same month in 2019. At $ 68.97, GOPPAR was down 37% in the month from its 2019 level.

Europe’s recovery is following a similar trajectory to that of the United States in terms of numbers. RevPAR, TRevPAR and GOPPAR were down around 30% in October compared to the same month in 2019, heralding a formidable fall and winter. This is made much more difficult as the continent grapples with a recent wave of COVID which is now exacerbated by Omicron and prompts many countries to revert to restrictions.

After Austria reinstated a lockdown on November 22, it extended it until December 11, becoming the first EU country to take such a step in the face of the COVID-19 outbreak.

Meanwhile, Portugal has reintroduced stricter restrictions, making face masks mandatory and requiring a digital certificate proving vaccination or recovery from COVID in order to enter restaurants, cinemas and hotels.

Among other costs, special attention should be paid to utility expenses, which, at 5.28 euros ($ 5.99) per available room, are now at the same level as in 2019. Annual inflation in Euro-user countries reached 4.9% in November, mainly due to soaring energy prices, according to Eurostat, the EU’s statistical office.

As Asia-Pacific continues to prepare for its comeback, it too is tightening borders in response to the Omicron specter. Japan announced this week that the country will ban foreign arrivals, just weeks after easing restrictions on visa holders, including short-term business travelers and international students. And the Philippines has banned arrivals from seven European countries, including the Netherlands, Belgium and Italy.

GOPPAR Asia-Pacific was registered at $ 43 in October, down 38% from the same month in 2019, but up 126% from September 2019.

Share.

Comments are closed.