Caribbean hotels see 18.6% increase in net operating income - Travel Weekly - 1 views
www.travelweekly.com/...crease-in-net-operating-income
technology green solution travel hotel hospitality
shared by yoyohad on 14 Sep 14
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The 2014 edition of PKF’s Caribbean Trends in the Hotel Industry reported that last year marked the third in a row that the region’s hotels saw double-digit percentage growth in net operating income, and it was the highest annual growth in operating profits since 2008.
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Rooms rates accounted for 56.8% of total revenue, the largest source of revenue for the properties in the sample. Food and beverage sales accounted for 28.8% of total revenue, and retail and recreational outlets another 12.7%.
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“Caribbean hotels have unique operating challenges that result in relatively higher expenses,” said Scott Smith, member of the Appraisal Institute and a vice president in PKF’s Atlanta office.
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lthough operating profits jumped 18.6% in 2013, the higher costs of goods, services and utilities in the Caribbean relative to the U.S. resulted in lower relative profit margins, according to the report.In 2013, Caribbean resorts registered a 16.3% profit margin, compared with a 21.4% margin for comparable U.S. resorts.
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I believe that the increase in Caribbean hotel's net operating income indicates that more travelers are now traveling to these destinations compare to few years ago. Coming back from the economical downtime, the hospitality is now seeing increases of revenue after the depression since 2008.Caribbean is an unique place for travel, and often required air/ sea transit for travelers all over the world. Thus also encouraged the purchase decision for airline and cruise services. And by adopting technology to being green, the hotel is able to reduce the utility cost. And we are seeing more new hotels under construction in the Caribbean region.
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Properties throughout the Caribbean have offered amazing deals for quite some time, but during the economic downturn, a Caribbean vacation was either unfeasible or seemed like an unnecessary extravagance for the average consumer. Despite incentives to visit, the $4/gallon fuel cost has hit us all in the wallet. This is reflected in an enormous increase in airfare and makes having a rental car that much more difficult. I wish the Caribbean hotel and tourism industry all the best, but I don't think we're going to see a full recovery for the next few years.