May 2011, hotel activity at full speed

The euphoria gradually overcomes hotel professionals as they observe the results of each European market as they enter a durable growth trend. The movement grows more widespread as the progress climbs. The level of business improves further with respect to May 2011 with substantial gains in occupancy in upscale categories, more than 4 points improvement, systematically surpassing the 70% mark in all categories. Thus the selection of distribution channels makes it possible to better valorize the sale of available rooms and favor profitable clientele. While growth remains modest in the economy hotel segment, which has a small maneuvering margin, improved prices are clearly superior from 3* on up. The RevPAR in May, driven by strong activity in trade fairs and professional events in Western European countries, gained more than 14% on the 3* segment and more than 15% on the 4*. Growth is similar to 2007, when hotel activity was relaunched after the impact of SARS and the Gulf War.This performance is very encouraging for the sector’s dynamism, and it is all the more positive as it is widespread throughout Europe of 27. The countries already in the lead, such as Germany and the Benelux, are further accelerating their efforts to catch up of prices and regain pre-crisis levels. The double-digit increases of average rates in Germany, Austria, Belgium, the United Kingdom and Sweden show that hotel demand is strong enough to allow these increases just one year after the progressive exit from the crisis. The weak growth of Europe’s hotel supply accentuates the pressure on available rooms and authorizes good Revenue management. While they were affected by overcapacity in the upscale categories, Eastern European countries also benefited from this forward movement. They have been chosen once again to host big budget incentives and seminar operations. Only Poland is slow...