Corporate cuts make hotels suffer

THE rise of "staycations", where we holiday at home, has done little to halt hotel insolvency, it was claimed today.

By The Newsroom

Published 3rd May 2010, 01:24 BST

Updated 3rd May 2010, 01:24 BST

The number of hotel companies that failed last year soared 61 per cent compared with 2008 and there could be "more casualties" to come, figures from accountancy firm Wilkins Kennedy showed.

Staycationers did increase domestic demand at hotels but establishments were hit by a slump in business travel, the company said.

It added that in contrast tothe experience of the hotel industry, the total number of corporate insolvencies across all sectors decreased by 11 per cent to 10,832 in the last 12 months, down from 12,112 in the previous year.

Wilkins Kennedy director Anthony Cork said: "Last year was marked by a strict tightening-up of corporate budgets, which led to a massive curtailing of business trips, conferences and team-building events."