Glasgow’s hotel sector has recorded its strongest annual occupancy level for 15 years according to the LJ Forecaster report, from tourism market research specialists LJ Research, which shows that the city’s hotel occupancy averaged 80.4% for the period April 2013 through March 2014.
It is the highest average occupancy that Glasgow has achieved in any financial year since record-keeping began in 1999 and it is the first time it has broken 80% – reflecting a 3.6% rise on 2012/13.
It also demonstrates the scale of industry growth in the city in the last 15 years, with average annual occupancy recorded for the period April 1999 to March 2000 reaching just 69%.
91%+ occupancy on 9 nights in March
Glasgow’s year-end success was buoyed by a strong performance during March, with city hotels recording occupancy of 78% – the 10th consecutive month of growth and the highest March level since 2007.
Specifically, on nine separate nights last month, occupancy reached 91% or more; peaking at 97% on March 15, when the city hosted the British Masters Cross Country Championships, and March 19 coinciding with the European Breast Cancer Conference at the SECC, which attracted 4,000 delegates.
There was more good news for the city’s hoteliers as March’s high occupancy rates mirrored a significant increase in average room rates (ARR) for the month, which rose almost 20% on March 2013 to £69.28.
Key events
Glasgow City Marketing Bureau believes March’s visitor influx can be attributed to a number of key events that took place throughout the month. This included marketing campaigns led by GCMB in partnership with P&O Ferries and Icelandair geared at attracting short-break visitors from Belfast, Iceland and the north of England, as well as the Glasgow International Comedy Festival, Disney on Ice and Michael Buble performing at the SSE Hydro.
Increased demand for April and May
Sean Morgan, Managing Director at LJ Research, said: “Although room rates for the 2013/14 financial year were largely comparable with the previous 12 months, Glasgow’s hoteliers have benefitted from an increase in consumer demand of around 5% on 2012/13. This is a real result against a backdrop of difficult economic conditions affecting national and international markets.
“What will be most pleasing to city hoteliers though is the strong start made to 2014. Our LJ Forecaster data shows significant growth between January and March in the volume of rooms being sold and room value, in terms of the price they are being sold at.
“In addition, our forward booking data suggests increased demand for April and May, so it will be interesting to see if these positive indicators are realised as we near the Commonwealth Games period.”
Bumper year
Councillor Gordon Matheson, Leader of Glasgow City Council and Chair of Glasgow City Marketing Bureau, said: “This report demonstrates continued leisure tourism growth against a pipeline of increasing accommodation supply and a bumper year which will see the city attract thousands of visitors and delegates to a raft of major events and conferences; including the Commonwealth Games, BBC Radio 1’s Big Weekend, the MTV European Music Awards and the Liberal Democrats’ autumn party convention.
“Glasgow’s appeal is year-round – unlike many cities, we’re no longer a seasonal destination with periods of down time. Our hotel sector has enjoyed 10 consecutive months of growth with some of the highest occupancy rates since records began – we’re now up there as one of the world’s must-visit destinations.”
About LJ Research Ltd
LJ Research Ltd is a leading provider of key data and specialised insight to the tourism, travel and hospitality industry. Produced by LJ Research Ltd, the LJ Forecaster produces the most comprehensive set of destination occupancy reports available, providing hotel and destination tourism managers with an up-to-date picture of the total room occupancy and availability in their city based on past and future sales.
For more information click here