Heathrow hotels benefit from T5 chaos

Hoteliers near Heathrow Airport are the big winners from the chaotic opening of the new Terminal 5. After problems with BA’s baggage system led to over 400 flights being cancelled during T5’s first week in operation, average room rates and occupancy levels at Heathrow hotels hit a five-month high.

The statistics reveal that average occupancy for Heathrow hotels in March was 78.3% while average room rate was £79.25, the highest levels since last November.

Other figures reveal that a total of 42.4 million bags were mishandled or delayed in 2007 by airports and airlines last year.

The air transport industry lost $3.8 billion (£1.9 billion) because of growing pressures on baggage management linked to passenger volumes, tight aircraft turnaround times, and heightened security measures.