On average for Europe compared with November 2023, the indicators are in the green. Total occupancy rate up by 1.4 points and average daily rates up by 1.6%.
No upturn for the budget segment compared with other segments
However, it is undoubtedly the top-end segment that is benefiting most from the influx of foreign customers, particularly Americans, who are happy to be back travelling in Europe.
The economy and super-economy segments also posted RevPAR growth of 3.4% and 3.5% respectively, supported by an increase in the occupancy rate (+1 and +1.9 points) and a slight rise in average daily rates (+2% and +0.7%).
Year-on-year, the top-of-the-range segment was also the best performer, with OR up 1.9 points, and ADRs also driving a 5% increase in RevPAR.
Europe as attractive a destination as ever
Of the 16 destinations on the panel studied, 7 were over 74% full in November. In terms of average daily rates, only Hungary posted double-digit growth. After the Czech Republic, Italy (+8.8%) and Greece (+6%) saw the biggest price increases.
At the bottom of the performance table, Switzerland (-0.9 points), France (-0.2 points) and the United Kingdom (-0.1 points) are the only destinations not to have seen a positive trend in OR. However, these variations are minimal compared with November 2023.
On a year to date basis (from 1 January to 30 November), only France saw its occupancy levels fall (-1 point compared to 2023). However, the score remains positive compared to 2022 (+1.8 points), demonstrating the strong effect of the Rugby World Cup in 2023 on occupancy rates.
In the south, Portugal continues to outperform the rest of the Mediterranean countries. Total occupancy rose by 6.3 points, enabling hoteliers to maintain a dynamic growth rate of +4.7%. Spain and Italy posted the same occupancy dynamics at +2.2 and +2.1 points. Italy and Portugal posted double-digit RevPAR growth (11.9% and 15.5%), while Spain slowed after a very positive year (+3.6% and 12.1% year-on-year).
Return of Russian customers boosts performance in Central Europe
Good occupation rates on European markets, with little downward trend compared with November 2023. The combination of leisure and business tourism continues to fill hotel establishments on the Old Continent.
All destinations are showing occupancy levels in excess of 64%, with the Czech Republic leading the way with 80.5% occupancy, up 8.6 points on November 2023. The destination’s hoteliers have taken advantage of this to continue to raise average daily rates (+9.1%), as they have in Hungary, where OR is up 9.3 points compared to November 2023, with ADRs up 17%.
Conversely, in Latvia, where occupancy has risen by 12.7 points, prices are falling. However, the presence of 3,500 NATO soldiers and the press to cover the Resolute Warrior exercise on 14 November will have put the spotlight on the Baltic country.
New dynamics are at work for this year 2024, which has no comparable for some destinations, including France. Corporate and public events are having an ever-increasing influence on business, as demonstrated by the impact of Taylor Swift’s tour in Germany.
About HSMAI Europe
HSMAI – Hospitality Sales and Marketing Association International – is a global organisation founded in the US in 1927. HSMAI Region Europe is the European arm of the organisation. HSMAI Europe aims to be a key influencer, pioneer and the go-to industry resource for professional development, commercial strategies and sustainability in the hospitality, travel and tourism industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry while operating as a leading voice for both hospitality and sales, marketing, and revenue management disciplines. Read More
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