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Danish hotels unable to profit from increased visits

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Get full insight in the danish hotel sector with this analysis of the 40 biggest Danish hotels. You also get economic indicators and contact information on all 40 companies.

This analysis is based on 40 Danish hotels out of the total 1,234 hotels in Denmark. The selected companies are the 40 biggest ind Denmark and therefore covers a great part of the danish hotel industry and offers unique business intelligence about this area. Despite the increased price sensitivity, the demand pattern of private customers in particular has not shifted towards lowerquality products. On the contrary, private customers continue to demand products of at least the same, and preferably higher, quality than before the economic slowdown. For example analyses of economic trends from 2009-2011 made by HORESTA have all shown that customers demand equal or higher quality than before.

The fact that customers have maintained their high expectations to the product quality while price competition among hotels has intensified, indicates that during times of recession it is the customers that hold the strongest negotiating position. In a broad sense the strong negotiating position can be explained by the general excess capacity in the hotel industry as well as the high level of fixed costs in the industry.

The excess capacity is best illustrated by the low occupancy rate in hotels, which has been below 50 pct. on a yearly basis since 2008, and even during peak season in the summer months the occupancy rate has been below 70 pct. since 2007. The highest occupancy rate measured during the analysis period was reported in July 2011 at 65 pct., which was also the highest measured occupancy rate since the summer of 2008.

Buy acces to this 13 page analysis of the 40 biggest Danish hotels below and download the analyses direct from this page. The analysis offers insight in the general development in the area and economic details and contact information on all 40 companies. Are you experiencing trouble please contact online editor of Berlingske Business Premium Michael Friislund on micfr@berlingske.dk.

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