MORE than half of UK hotel owners plan to increase their room rates in 2014 as businesses regain confidence, with over a third optimistic about profits next year, according to new data released today.
A survey of 19,000 travellers and 10,000 accommodation owners by researcher Edelman Berland for travel website Trip Advisor found that 30 per cent of those increasing rates were doing so in anticipation of increased demand.
More than 30 per cent of Britons expect to increase their travel budgets in 2014, despite lingering pessimism about the economic recovery, although a fifth of those are planning to take shorter and more frequent breaks.
The study came as PwC said today that it expected to see stronger prices in 2014 after a volatile year that saw hotels performing against tough comparisons with the 2012 Olympic Games.
The business advisory firm has forecast the average daily rate (ADR) across London hotels to increase by 1.5 per cent next year to £138.19, compared with a 2.3 per cent fall in 2013.
Revenue per available room (RevPAR) – a key industry measure – is also expected to increase by 2.4 per cent to £112.80 with occupancy edging up from 81 per cent to 82 per cent.
Liz Hall, head of hospitality and leisure research at PwC, said: “A return to some kind of ‘normal’ in 2014 will be welcomed after 2013’s post-Olympic correction. London has struggled this year but stronger pricing in 2014 and record RevPAR are expected.”
A separate study by Hotels.com shows prices have also increased at over half of overseas destinations for Britons, with Cancun, Sharm El Sheikh and Marrakech topping the list.