Tourism Authority to release data on hotel revenues

Bermuda Tourism Authority (BTA) today announces that, along with arrival numbers of leisure and business travellers; revenue generated by tourists through visitor spend; and  contributions to Gross Domestic Product, it will also begin to release data on hotel revenues. In addition, exit survey data indicating visitor satisfaction will be released proactively.  This is the first time that the BTA has announced performance metrics as they were previously released by the Bermuda Department of Tourism.  This release marks the beginning of the BTA’s new approach both to in depth metrics and to a commitment to share them on a timely basis.

Hotel Performance Metrics

• December 2013 hotel rooms on the books were up 10 per cent versus 2012. Total rooms on the books for 2013 were relatively flat with last year.
• Total rooms on the books for the next six months are up 5 per cent versus the same time last year with each month falling as follows:

• The number of room nights booked during the month of December increased 19 per cent from December last year.
• Group rooms on the books for the next six months are up eight per cent from last year, pointing to growth in the MICE (Meetings, Incentive, Conferencing, Exhibitions) business in Bermuda

Source: Hotel Pace Report December 2013

Hotel Revenue Metrics

The Smith Travel Research destination report measures hotel performance on occupancy, average daily rate and revenue per available room (RevPAR).  RevPAR is a good indication of hotel performance because it combines the hotel’s occupancy with its average daily rate (ADR). 

December’s report showed an impressive performance for the month and ended 2013 on a positive note.

Occupancy – percentage of rooms occupied

For the year 2013, hotel occupancy was up one per cent; however December saw an increase of 10 per cent over December 2012.

Average Daily Rate (ADR) - Room revenue divided by rooms sold, displayed as the average rental rate for a single room.

December ADR was up four per cent compared with December 2012. Bermuda’s ADR for the year of 2013 was five per cent higher than 2012.

RevPAR (Revenue per Available Room) - Room revenue divided by rooms available.

RevPAR increased 14.6 per cent from December last year. RevPAR for Bermuda year to date grew 6.5 per cent over 2012.

Source: Smith’s Travel Research Report December 2013, which measures a sample of 76 per cent of rooms on the island.

Arrival Numbers

Cruise arrivals were down ten per cent in 2013 compared with 2012.  This was a result of 32 cruise calls lost.  Holland America’s Veendam did not make calls, the cancelations of the Grandeur of the Seas due to fire, and the repairs to Heritage Wharf dock at the beginning of the 2013 season.

Air arrival numbers show that October arrivals were up two per cent in 2013 compared with 2012. November 2013 air arrivals were up six per cent compared with 2012 and December 2013 was up almost 14 per cent compared with 2012. Overall, Q4 air arrivals were up by six per cent compared with 2012. Total air arrivals were up by two per cent in 2013 compared with 2012.

Bill Hanbury, CEO, Bermuda Tourism Authority, says: “Given the challenging economic environment in which all tourism businesses have been operating, these numbers are encouraging. Bookings for the next six months are up by 5 per cent and we finished the year with a 6.5 per cent increase in RevPAR and occupancy increased 10 per cent this December. While these figures show a welcome growth, it is now that the hard work of the Authority begins. Today manifests our commitment to providing up-to- date and extensive information, which we will continue.”

Erin Smith, Director of Research & Business Intelligence, Bermuda Tourism Authority, says: “We are building a comparative data bank that will allow us to understand the industry in detail and to respond accordingly. This will allow us to realise the objectives of the National Tourism Plan in building a unique and competitive positioning, improving quality throughout the tourism value chain and attracting business development and investment. The information we will be releasing will thus be broader than historic data released and we’re very excited about it.”

The majority of the metrics will be issued monthly and others will be shared quarterly or annually.