Danubius Hotels says most guests are small spenders

Hotels

Danubius Hotels’ strategy for next year aims to keep euro-term room rates steady as fewer guests are big spenders, CEO Imre Deák said in Thursday’s issue of business daily Világgazdaság.

A price war started in 2009 brought hardly any more guests, but spending per guest dropped significantly, Deák said. Most guests are now small spenders, he added.

The aim is not to increase revenue at any price, Deák said.

Boosting efficiency remains a goal on the expenditure side, he said. The company is restructuring the management at its hotels in Budapest with layoffs, he added.

Danubius Hotels’ third-quarter net income plunged 82% to HUF 542m from the same period a year earlier, dragged down by a big financial loss, the company’s consolidated IFRS report published late Tuesday shows.

Revenue edged down 3% to HUF 13.78bn during the period. Operating costs fell at a faster rate, dropping 4% to HUF 11.07bn to lift operating profit 1% to HUF 2.71bn. But Danubius Hotels’ bottom line was hit hard by a HUF 2.02bn financial loss, compared to a HUF 483m gain in the base period.

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