Hotels and B&Bs struggle to fill rooms as tourists stay at home

TRAVEL TRENDS: IRELAND’S HOTELS, B&Bs, guest houses and other accommodation saw a substantial decline in their occupancy…

TRAVEL TRENDS:IRELAND'S HOTELS, B&Bs, guest houses and other accommodation saw a substantial decline in their occupancy rates in the first eight months of the year. Self-catering and hostels have been particularly badly hit, mainly by a decline in overseas visitors, according to Fáilte Ireland.

The average hotel occupancy rate between January and August was 56 per cent, compared with 60 per cent for the same period in 2008. Guest-house rates were down to 45 per cent from 51 per cent, and BB occupancy dropped to 34 per cent from 38 per cent.

Hostels showed the greatest fall, slipping from 63 per cent to 49 per cent. Self-catering accommodation was, on average, occupied 40 per cent of the time, compared with 48 per cent last year.

Fáilte Ireland said the downturn at hotels can largely be attributed to falling overseas demand. It said the overall downturn in domestic occupancy can be attributed to a reduction in business across each of the main market segments.

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“Against this background, it is not surprising that almost all hoteliers reported average room yields to be down on last year,” a spokesman said.

Fáilte Ireland noted that the CSO’s Household Travel Survey for the second quarter of the year, published this week, revealed that while spending is down, more people are staying at home for trips. The number of foreign trips taken by Irish residents fell by 6.5 per cent between April and June. But the number of domestic trips was up by 9.4 per cent, which may offer some succour to the accommodation industry.

“The drop in revenue is serious for the tourism industry, and many businesses are struggling,” a spokesman for Fáilte Ireland said.

But he added that operators had “really come on board” in terms of special offers and were also developing their web presence. “If they’re not online, they’re dead,” he said.