Numbers of bed-nights are falling by as much as 30 per cent across the region, according to a new report by hospitality software company Amateo. Competition between hotel chains and independents is expected to intensify in the shrinking market.

Amateo chief executive Matthew Maxwell said: "The current business for hotels in the south has already suffered due to the foot and mouth crisis.

"The recent events have been the final nail in the coffin for many hoteliers in what has been a dire year for the hospitality industry.

"Discounts on hotels in the south are currently being offered at up to 70 per cent. The result is that they are getting bodies in the door, but they are barely warm.

"Discounting will raise occupancy levels to an extent, but it will not produce sufficient revenue to survive in the long term.

"Many hotels are struggling to cover costs with the spate of cancellations and drop-off in bookings."

Amateo has spent the last two years preparing itself for a shakeout in the industry. This month the company announced the award of several new contracts with major hotel groups in the UK and Europe, including the Choice Hotels Europe group.

Choice has adopted the company's software in a bid to increase sales during the current business climate.

Published in the Daily Echo October 22nd 2001

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