AIB has issued analysis on hospitality and tourism customer card spend for the first half the year. The data shows the hospitality sector had an increase of 3.3 per cent in overall spending compared to the same period last year.
The pub trade had an encouraging six months, with spend up 11.4 per cent, while restaurant spend experienced a more modest increase of 3.4 per cent. Accommodation spend declined by 2.6 per cent, with transaction numbers down by the same amount. On the other hand, travel agent transaction numbers were up 16 per cent and overall spend up 14.3 per cent, while airline transaction numbers increased by 4.5 per cent and overall spend rose by 7.3 per cent during the period.
Cork-based Trigon Hotels includes Cork city’s famous Metropole Hotel and the Cork International Hotel in the airport business park. “The 2024 season has been a blend of results, reflecting broader trends in the hospitality industry,” says managing director Aaron Mansworth. “While the Irish hotel market hasn’t quite matched the heights of last year, it remains steady.
“Cork, as always, is vibrant and resilient. Significant investments in MacCurtain Street, where the Metropole Hotel is located, under the VQ (Victorian Quarter) strategy, the anticipated Events Centre, and the ongoing development of the docklands are all promising signs of Cork’s continued appeal.”
Mansworth has observed some shifts in the market this year: “Our food and beverage operating costs have risen compared to last year, while food sales have dropped off slightly. The average length of stay has shortened and we’ve noticed a trend toward shorter booking lead times, with most bookings now made within seven days.
“On a positive note, mobile bookings surged by 30 per cent across all our properties this summer, underscoring the importance of mobile-friendly platforms.”
Despite a stable average daily rate, the group saw a slight decline in the average booking value as guests leaned towards value-oriented options.
“Our stay, park and fly packages are gaining popularity at the Cork International Hotel, reflecting increased use of Cork Airport,” says Mansworth. “While the UK market has dipped by 17 per cent, a 24 per cent increase in US visitors has been very encouraging.”
Corporate travel is tightening, impacting both business stays and the Christmas party market, he notes.
“Nevertheless, we’re committed to investing in our properties to remain competitive. We’ve invested over €500,000 into upgrading the Metropole’s ballrooms and have further plans to continue investment. While the market is challenging, we remain optimistic about Cork’s future. Strategic investments will position us well for 2025 and beyond.”
Sustainability is a core value for the group. “Our recently launched food charter exemplifies our commitment to sustainable food services,” says Mansworth. “Developed by our chefs and food service teams, the charter outlines 10 key commitments that align with our sustainability objectives. It serves as both a communication tool and a mechanism for accountability, ensuring we stay on track with our goals.
“We are also planning further enhancements to our meeting and events menus as part of our continuous improvement journey.”
Trigon Hotels has joined the Fáilte Ireland Climate Action Programme in an effort to further reduce its carbon footprint.
“Although we’ve already achieved a 5-to-8 per cent reduction in carbon emissions per person across our hotels, we recognise there is more work to be done,” says Mansworth. “The resources and guidance from this programme will be instrumental in helping us audit our operations and achieve our carbon reduction targets. This initiative not only benefits Trigon Hotels but also contributes to making Ireland a more sustainable destination for visitors.”
He has some advice for businesses seeking to enhance their ESG efforts: “We recommend aligning your strategy with recognised global standards. Set clear, measurable goals, engage your teams and stakeholders, and build partnerships with local communities.
“Transparency in communicating your progress is essential for maintaining accountability and driving continuous improvement.”
AIB’s head of hospitality and tourism sector, Jonathan Clarke, says AIB is committed to supporting its customers and provides meaningful guidance for businesses through its sectoral experts.
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“Our sectoral outlook reports provide valuable insights that are crucial for businesses to help them plan accordingly and support our customers in their choices,” he adds. “Whilst margins will continue to be challenged into the second half of the year, AIB macroeconomic forecasts indicate that inflation rates will continue to normalise.”
Strong employment rates and stable, incremental, modified domestic demand growth for the rest of 2024 will help to support consumer spend, Clarke believes.
“Air access in 2024 is also set to be ahead of both 2019 and 2023 levels, which will help drive tourist numbers, albeit sun routes directed towards domestic outbound travel also continues to be a growth area in airline schedules,” he says.