Hotels in transylva 2 have been ‘losing money’ by the end of September, reports say

Hotels are suffering from a ‘loss of money’ as a result of a ‘slash-and-burn’ management overhaul that was first implemented by the previous government in 2016, according to a new report.

The report from hotel industry group Hotels Australia and the hotel sector association says that since the first Transylvana Hotel opened in the UK in April 2019, revenues have dropped from £1.3bn to £1bn.

In the past five months, revenues fell from £2.9bn to just £1billion, the report said.

The report also highlighted that in 2017, hotel revenue fell by 7 per cent from £14.9 billion to £10.2bn.

The hotel industry is experiencing a ‘decline in revenue from the hotel industry, which is predominantly based in London’, the report found.

Hotels are losing money on average by up to 20 per cent annually, the association said.

“Hotels have had to cut back on some of their most valuable assets, including in-room hospitality, which has contributed to a loss of revenue,” the association’s CEO, Mark Taylor, said in a statement.

Since the start of 2018, the hotel segment in Australia has lost $5.5 billion ($7.3 billion), while the sector in China has lost about $6 billion ($8.2 billion).

In the US, the travel industry has lost nearly $2.2 trillion ($3.9 trillion) and the industry in Canada lost $1.4 trillion ($1.9 million).

The hotel sector in Europe has also been hit, with losses rising from $1 billion ($1 million) to $2 billion ($2 million) over the past six months.

Hotels in Australia had previously been told to slash costs by up and down the line to attract more guests.

But the report says that the company has been unable to find ways to cut costs by as much as 25 per cent a year, and that hotel staff are ‘not being paid as much’ as they are promised.

Australia’s top hoteliers have faced pressure to cut prices to attract new guests and, by 2020, hotels are expected to have to spend more than $4 billion on advertising and promotion to keep up with demand.

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