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Analysis

United Kingdom: The hotel industry converts the try in Rugby World Cup

The 48 matches for the championship were held between last September 18 and October 31 in eleven cities in the United Kingdom, boosting tourism in these destinations. In the forefront: the hotel industry was able to considerably improve its results, as may be seen in data from MKG Hospitality.

The results produced during the Rugby World Cup could only please British tourism. It forecast 440,000 international visitors and 2 million British travelers, and the country appears to have come out a winner, particularly on a regional scale.

The hotel industry successfully captured its share of the revenues from the championship starting in September, during which the Revenue per available room (RevPAR) in the country was able to progress by 5.5%. Growth in results then accelerated in October, thanks to matches each week. The RevPAR thus progressed by 8.3% on the period, particularly due to the 7.1% increase in average daily rate. The occupancy rate, meanwhile,  showed 1 point improvement, although in some cases traditional clientèle postponed travel during the games.

The momentum gained by the British hotel industry is more evident on the regional level. Aside from London, which benefits from steady arrivals year round, the eleven host cities for the event observed a brusque boost to their tourism and their hotel results.

With eight matches played in its stadium, Cardiff saw the RevPAR of its hotels leap by 33.9% in September and 79.5% in October, Particularly due to the strong growth in their average daily rate. In the cities of Manchester and Leeds, where one and two matches, respectively, were held during the second month of the championship, the RevPAR progressed by 15% and 13.5% on the period.

Hotels in Birmingham also benefited from the busyness related to the competition, with increases in its RevPAR by more than 9% across the two months. More generally, tourism in the city has benefited from the World Cup and municipal authorities expect to host 38.1 million tourists across the year 2015, of which 4 million in September alone. They also estimate that the sector's revenues will reach 6.2 billion pounds sterlings, or more than the 5.9 billion received in 2014.

Finally, in Newcastle, the Rugby World Cup brought close to 43 million pounds sterling to the city's economy as occupancy rates neared 99% on game days.

Thanks to these results in September and October, the British hotel industry may confidently look forward to the results of 2015 overall. On the first ten months of the year the country's RevPAR progressed 5.4% thanks to 4.6% growth in the average daily rate and slight improvement by 0.6 points in the occupancy rate.

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  • British tourism breaks new records
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  • Coming soon: an hotel in Scotland Yard!
  • World Rugby Cup: London should convert the try

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