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Increased staff costs continue to hit the bottom line for hotels, with investment in AI expected to rise as hoteliers look to create efficiencies, according data from RSM.
The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows average daily rates (ADR) of occupied rooms in London dropped from £218.34 to £206.99 in May year-on-year, and from £152.93 to £149.08 in the UK.
Occupancy of London hotels was also down slightly from 82.5% to 82.2% in May year-on-year, and from 79.8% to 79.4% in the UK.
This meant gross operating profits suffered a hit, falling from 43.3% to 39.9% in London and from 39.1% to 37% in the UK.
Hotels appear to be increasing spend on IT systems, with total expenditure having grown by 27% in London and 21% in the UK, when compared with three years ago.
Chris Tate, partner and head of hotels at RSM UK, said: “It is clear hotels have increased investment in technology, and we only expect that to rise as they look for ways to improve efficiencies and customer experience.
“Many hoteliers have come to terms with the higher employment costs and can’t easily cut these as their staff are essential to provide the best customer experience. Instead, they need to work smarter, which could involve making greater use of AI and automation in certain tasks to increase productivity.”
He added: “With government initiatives in its Industrial Strategy including investment in high streets and creative industries which should bring more tourists to the UK, along with a tourism strategy which is due to be published by the end of the year, the sector should reap the benefits in the long-term. But with increased strain on room rates and profits, it’s clear that some hoteliers are in need of more immediate support.”
Increased staff costs continue to hit the bottom line for hotels, with investment in AI expected to rise as hoteliers look to create efficiencies, according data from RSM.
The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows average daily rates (ADR) of occupied rooms in London dropped from £218.34 to £206.99 in May year-on-year, and from £152.93 to £149.08 in the UK.
Occupancy of London hotels was also down slightly from 82.5% to 82.2% in May year-on-year, and from 79.8% to 79.4% in the UK.
This meant gross operating profits suffered a hit, falling from 43.3% to 39.9% in London and from 39.1% to 37% in the UK.
Hotels appear to be increasing spend on IT systems, with total expenditure having grown by 27% in London and 21% in the UK, when compared with three years ago.
Chris Tate, partner and head of hotels at RSM UK, said: “It is clear hotels have increased investment in technology, and we only expect that to rise as they look for ways to improve efficiencies and customer experience.
“Many hoteliers have come to terms with the higher employment costs and can’t easily cut these as their staff are essential to provide the best customer experience. Instead, they need to work smarter, which could involve making greater use of AI and automation in certain tasks to increase productivity.”
He added: “With government initiatives in its Industrial Strategy including investment in high streets and creative industries which should bring more tourists to the UK, along with a tourism strategy which is due to be published by the end of the year, the sector should reap the benefits in the long-term. But with increased strain on room rates and profits, it’s clear that some hoteliers are in need of more immediate support.”
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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