Business travels starting to pick up
Intercontinental Hotels, one of the biggest hotelchain in the world has announced that business travels started to pick up recently as they are getting more business through their luxuary hotels in Asia. Their total revenue grew 3% to $362 million.
In the first quarter of 2010 their operation profit grew 4% comparing to the previous year and it reached 83,2 million dollars, while analysts expected only $73,2 million climb. Key industry measure, revenue per available room has also improved with 0,2% in the first quarter of the year.
The growth of this index was already 4,1% in March and 5,2% in April compared to 2009 results. Intercontinental is optimistic about future perspectives and market share growth as well. Although room prices are still depressed, slow improvements are visible in demand according to the company. Without a doubt the economic crisis had a major impact on the business travelling segment, but now it seems that it’s starting to pick up too. Though, last year Intercontinental’s operating profit topped analysts expectations and reached $363 million, still it was a fallback. Net income has decreased 19% last year and fell to $214 million.
Intercontinental Hotels which is operating 4438 hotels worldwide and 650 000 rooms in total faced a 14,7% drop of revenue per available room last year, while the hotelchain which is running networks like Holiday Inn, Intercontinental and Crowne Plaza has added 26 828 new rooms.
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