finance

Staycations drive Scottish hotel occupancy up for fourth consecutive month



Scottish hotel occupancy rates jumped 6% in August, as the staycation market increased levels for the fourth consecutive month.

Accounting group RSM’s Hotels Tracker analysis – based on data compiled by hospitality analytics firm STR – showed that the average occupancy rate in Scotland has risen from 64% on July to 71% in August.

However, despite the staycation boost, Scotland didn’t reach the pre-pandemic, Edinburgh Festival-driven highs of 86% occupancy rates in 2019.

By comparison, the average UK occupancy rate also increased 6% to 71% in August, from 65% in July.

The average room rate across the UK has almost recovered to pre-pandemic levels at £94, with Scotland reaching £98, up from £86 the previous month.

In addition, revenue per available room across Scotland was £70 in August, up from £36 the same time last year, but still behind pre-pandemic levels at £93.

Stuart McCallum, RSM UK’s head of hotels and accommodation in Scotland, said: “The hotel sector is on the right track with a welcome staycation boost driving occupancy levels up again this month.

“Staff shortages continue to impact the sector which is starting to push up wage costs – applying acute financial pressure as the sector looks to recover post-Covid.

“Looking forward, travel restrictions for the double jabbed and the re-opening of travel corridors to the US will hopefully fuel further growth as the hotel sector looks to enjoy a post-summer boom and busy build up to the festive period.”

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