Access the main content

Analyses

Europe’s hotel industry on the right tracks

The year 2008 is off to an excellent start for Europe’s hotel industry. The month of February proves that the offpeak season is not synonymous with low levels of activity. The RevPAR is up by 6.8%, for a growth rate in keeping with the twelve cumulated months (+6.6%).

After a very satisfactory month of January, Europe’s hotel industry continues the year on a positive note. The revenue per available room rose by 6.8% in February. This traditionally slow month for the hotel industry proved profitable. While occupancy stagnated (+0.3 pt) with respect to a good 2007, hoteliers continue to benefit from a broad maneuvering margin for room rates. The average daily rate is up by 6.4%. The figures – just for now? – contradict the bad augur from the New World. And results have been homogenous for this month of February. Growth in the RevPAR may be observed in all categories from 6.4% for 4* to 7.7% for 0*. Occupancy is particularly satisfactory for super-economy categories while average daily rates are pulling the results up in the 2* and upscale segments alike. Each month brings its share of good news for the midscale category. Higher average daily rates (+7.3%) result in strong growth (7.6%) in room revenue. Midscale hotels continue to dissimulate a .ne growth margin in terms of occupancy, behind competition from the upscale or economy segments.Decreases have been rare in this month of February 2008. Italy (-1.5%) is the only country to give any reason for dis-satisfaction. Down by – 0.5%, Austria is among the bad students even if the drop is not very significant, but that doesn’t make this a trend. The country that is preparing to welcome the Euro 2008 next June needed to boost occupancy by adjusting its rate down (-2.4%). For the rest, Europe’s skies are glowing that peculiar shade of blue of fine winter days. Belgium (+14.3%), thanks to strong administrative activity, is in the lead just ahead of Germany which affirms its position on Europe’s tourism market each month (+13.5%). Average daily rates (+16.2%) in Spain largely offset a drop in occupancy (-3.0 pts). To the east, skies are blue again with Hungary (+12.9%) leading the dance ahead of the Czech Republic (+10.2%) and Poland (+8.0%) thanks to an increase in conventions. While the country continues to post the highest ORs with an average of 74.1%, the United Kingdom is falling back into the ranks as its growth appears to slow with +4.1% in February versus +5.9% on twelve cumulated months. Although the result is not impressive, the Netherlands (+2.3%) nonetheless succeed in pursueing a good growth over February 2007, which already saw the RevPAR grow by 15.3%.Decreases have been rare in this month of February 2008. Italy (-1.5%) is the only country to give any reason for dis-satisfaction. Down by – 0.5%, Austria is among the bad students even if the drop is not very significant, but that doesn’t make this a trend. The country that is preparing to welcome the Euro 2008 next June needed to boost occupancy by adjusting its rate down (-2.4%). For the rest, Europe’s skies are glowing that peculiar shade of blue of fine winter days. Belgium (+14.3%), thanks to strong administrative activity, is in the lead just ahead of Germany which affirms its position on Europe’s tourism market each month (+13.5%). Average daily rates (+16.2%) in Spain largely offset a drop in occupancy (-3.0 pts). To the east, skies are blue again with Hungary (+12.9%) leading the dance ahead of the Czech Republic (+10.2%) and Poland (+8.0%) thanks to an increase in conventions. While the country continues to post the highest ORs with an average of 74.1%, the United Kingdom is falling back into the ranks as its growth appears to slow with +4.1% in February versus +5.9% on twelve cumulated months. Although the result is not impressive, the Netherlands (+2.3%) nonetheless succeed in pursueing a good growth over February 2007, which already saw the RevPAR grow by 15.3%.

This article was published over a month ago, and is now only available to our members.

Access all content and enjoy the benefits of subscription membership

and access the archives for more than a month following the article

Register

Already signed up?

Loading...

You have consulted 10 content. Go back home page or at the top of the page.

Access next article.

Sign up to add topics in favorite. Sign up to add categories in favorite. Sign up to add content in favorite. Register for free to vote for the application.

Already signed up? Already signed up? Already signed up? Already registered?