Fairmas hotel report: June 2014

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Fairmas hotel report: June 2014

July 9, 2014, In All news, Fairmas hotel report

Hotel performance May 2014 in comparison to last year

Those spring feelings are back. While spring began very early and promisingly in most places back in February, it deteriorated just as sharply in March and April. Now it’s back. May was able to provide some decent figures almost everywhere. The small number of public holidays ensured a good business month almost everywhere. And the prospects for the summer months aren’t bad, either.
In this month’s top story, we take a critical look at the room rate structures in the different star categories and the worrying way they are developing. Ms. Nadine Kilian, Marketing & Communications Manager at Fairmas, outlines the development of the room rate “corridor” in the last five years, in a comparison with the general rate of inflation. Though costs are rising consistently on every front, room rates still remain unchanged. What this means for the German hotel industry stands to reason. For a long time now, costs do not seem to have been determining prices anymore. Instead, there is cut-throat competition everywhere due to the increasing numbers of beds and the apparent need to fill these beds completely, at whatever rate can be obtained. But conversely, those prices that can be charged also determine the costs that can be afforded. This quickly takes its toll on quality and credibility, especially in the premium categories. Guests notice this at once and penalize it straight away.

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