Hotels (Commonwealth Union) _ Mews, in its 2023 data dive, highlighted the significant impact of online check-in on the hotel industry, with 23% of guests opting for this service. The report also revealed that revenue per available guest increased by nearly 10% in the UK. As hotels face growing pressures, the industry is witnessing a shift in revenue generation strategies, with a notable increase in properties selling additional bookable services.
Approximately 25% of UK hotels are now diversifying revenue streams, representing a 66% increase from 2022. The strategy of offering additional bookable services, such as parking, has contributed to an increase in Revenue per Available Guest (RevPag) to £199. Hotels with parking facilities made £2,102 more in 2023 compared to the previous year, showcasing the importance of evaluating the entire hotel for revenue generation, beyond just rooms.
The report highlighted the value of online check-in, revealing that 23% of guests checked in online in 2023, and 3% of them opted for upgrades during the process, with an average upsell value of £21. Breakfast, towel, late check-out, early check-in, and parking were among the top upsells. The proportion of guests upgrading during online check-in nearly doubled year-on-year.
Other key metrics include an Average Daily Rate (ADR) of £177, a 13% increase from the previous year, and a RevPar of £95, reflecting a 10% growth. However, occupancy slightly decreased to 62%, down 2.3% from 2022. International travel stabilized, with a nearly equal split between domestic and international travel. The CEO of Mews, Matt Welle, noted that hoteliers are becoming more creative with amenities and spaces offered to guests. The data indicates that hotels are leveraging all available assets, offering additional spaces such as co-working desks and karaoke booths to enhance guest experiences. Welle expects 2024 to witness more hoteliers revolutionizing revenue management by capitalizing on diverse offerings
