Hotels in Europe have begun to drop their prices for this summer in a bid to avoid losing customers because of the weak pound and economic downturn.
Accommodation–only provider HotelConnect said 50% of its hotels have reduced their prices by 10% to 15% for July and August.
The move comes as hotel occupancy levels are falling in European cities as holidaymakers opt for UK or non-eurozone destinations such as Turkey and Egypt.
Sales figures from HotelConnect show destinations outside the eurozone have shown strong growth, with Budapest up 33% and Krakow up 20%. However, eurozone destinations have slipped back, with Amsterdam dropping 18% and Rome down 12%.
HotelConnect commercial manager Ian Ackland said: “Thankfully, some hotels are beginning to realise the impact the euro is having on occupancy levels. These rate reductions are absolutely necessary to keep people coming to Europe.”
The bed bank is encouraging the rest of its hotel partners to reduce their prices for the summer and autumn, as European destinations come under increasing pressure.
The strength of the euro means hotel prices could rise by 15% next year, but HotelConnect is negotiating with hotels to keep the increase down to 8%.
Ackland said: “Our message to hotels is this – relying on dumping inventory at the last minute could now cost you more on the bottom line. It won’t be a case of selling a small amount of inventory at the last minute as there will be too much to shift at late notice.”
He added: “City hotels are only looking eight to 10 weeks ahead. With no improvement in the exchange rate or economy in sight, savvy hoteliers must look three months or more ahead – and act now.”
- Hotel Girl: Chloe Berman’s hotel blog