Europe: Drop in Rack Rates Confirms Economic Slowdown | MKG Reports The drop in Rack Rates in 2008 verifies European hoteliers’ concern. The global decrease in the European Union remains moderate (-1.4%), but is striking compared to the steady growth recorded over the past years. Upscale hotels are particularly hit hard and have to review their pricing policies, while economic segments still sustain positive growth.
France remains one of the few EU countries with an increasing rack rate in 2008. Upscale hotels are unable to offer similar rates as last year during the Rugby World Cup, while the midscale and economic segments appear more resilient to the economic slowdown.
In Germany and the United Kingdom, where the hotel industry is particularly dependent on business tourism, operators adapt pricing policies to the economic slowdown.
The world economic crisis further impacted Italy’s and Spain’s existing fierce price competition in the upscale hotel segment. Source: wiredhotelier.com Recorded : 3/12/2009 7:59:15 AM