June 2017: the gap widens between European hoteliers

European hospitality records a slight rise in the month of June 2017, with a RevPAR (revenue per available room) up 1.7% compared to the same period last year. These results can be explained by the relatively slow change in occupancy rate (+0.6 point) and in average daily rates (+1%). Nevertheless, this trend conceals major gaps, particularly between the different ranges considered: whereas the budget segment decreases by 5.1%, the upscale range rises by 3.9%. The result is that the average growth in RevPAR is just above the previous year's average performance thanks to the success of the luxury segment which experienced 6.4% growth since the beginning of the year.



h2#infogram{font-size:22px;text-align:center}

June 2017: Change in European countries' hospitality indicators vs. June 2016



Range discrepancies are compounded by geographical gaps in the European hospitality industry in June: some countries experience double-digit growth while others decline. On the positive side, Hungary records the strongest growth, with a RevPAR reaching €70.1 (excluding tax) for an increase by 21.3%. The Eastern European country is followed by three destinations that are among holidaymakers' favorites: Portugal (+19.3%), Greece (+17.7%) and Spain (+16.8%) all benefit from the first weeks of the summer season to increase their prices - in Portugal, average daily rates rose by 18.4% - although their occupancy rates remain steady compared to 2016. 

However, the weakest European country in terms of hospitality in June is Germany, which records a RevPAR down by 8.9%. This is mainly due to the fact that important trade fairs and exhibitions held once every two years or more, were not held in 2017; this is the case of the Berlin Air Show, Automatica Munich and Drupa Düsseldorf, which generally provide strong support for their the host cities' hotel industry. Nearby, France features the other decrease recorded in June 2017: its

...