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July 2019: no excess for European hoteliers

European hoteliers maintained their occupancy and revenues during this first month of the high season. No double-digit growth except for seaside destinations. While some European destinations are crying out about overtourism, the data reflect a contrasting reality.

With occupancy up +2.1 points between July 2016 and July 2017, +0.9 percentage points in 2018 and +0.7 percentage points in 2019 in Europe overall, the trend remains positive. Hoteliers maintained their average daily rates at +1%, resulting in a +2% increase in RevPAR (€79.80 ex-VAT). This is the budget segment presents the best growth with +1.1 points in OR (75.3%), +2.2% for the average daily rate for a RevPAR up +3.8% (€38.80 ex-VAT). The economy segment experienced + 0.9 points increase to 78.3% , with prices up +0.3%, driving up RevPAR by +2.5% (€56.50 ex-VAT). The RevPAR for the mid-scale segment grew +2.1% (to €74.20 ex-VAT) with a +0.5 percentage point increase in OR to 78.8% and relatively stable prices up +1.4%. As for the upscale segment, it has the best occupancy rate at 80.3% (+0.6 points) with stable prices at +0.7% (to 150.70 € ex-VAT) for a RevPAR up +1.4% to 121.10 € ex-VAT.

Year-to date, RevPAR improved by +3.1% (to €69.80 ex-VAT), and once again the budget segment grew the most with +3.8% of RevPAR since January 2019 (€33.70 ex-VAT), the highest occupancy being in the upscale segment with 73.2%, although the economy segment posted the best growth with +0.8%.

Business and leisure tourism combined to enable Luxembourg hoteliers to significantly increase their average daily rates by +16.6% (to 134.20 € ex-VAT) , which is the only double-digit increase in the panel even despite a 1.8 point decrease in OR compared to July 2018 (79.2%). Poland is back on track with the strongest increase in OR in the panel thanks to +2.4 additional points (76.1%) combined with ADR up +6% to produce a RevPAR up by +9.6% (€50.60 ex-VAT). Austria brings up the rear of the top three with the second highest increase in OR in the panel by +2.2 points, combined with an ADR that pursued growth by +5.5% resulting in a RevPAR up +8.4% to €76.40 ex-VAT.

The month of Belgium's National Day, held on July 21, was beneficial to hoteliers: +6.7% RevPAR (€74.50 ex-VAT) thanks to average daily rates up +5.6% and a slight increase in OR by +0.8 points. The destination's occupancy rates have been in the green since the beginning of the year. Brussels and Ghent are driving July 2019's performance upwards, while Liege and Antwerp show a decline in OR and ADR.

Italy, the leading summer tourist destination in the panel, closed July with a +5.8% increase in RevPAR (€95.90 ex-VAT). The OR resists with +0.9 points; it is the economy segment that performs best with +3.6 percentage points. All destinations are in the green across all indicators. Only Rome saw its OR decrease by -1 percentage point.

Portugal also benefited from this high season month with the third strongest growth in the panel by +2 points (OR up to 84.7%), accompanied by a price increase of +1.1% for a RevPAR up +3.5% (€82.00 ex-VAT). The upscale segment posted a +5 percentage point increase in OR with average daily rates stable at -0.1% (€139.10 ex-VAT).

Spain, the third seaside destination in the panel, displayed a +2.0% increase in RevPAR with an OR of +1.3 points and average daily rates stable with +0.3%. Economy and upscale segments posted the best performances with +3.7% and +3.3% for their respective RevPARs. In Spain only Seville and Malaga saw their OR drop by -2.1 and -3.0 points.

France remains in the green at +2% of RevPAR (€76.90 ex-VAT) sustained by a stable OR at +0.3 points and average daily rates up +1.6% (€110.60 excluding VAT).

Germany and Hungary presented a +1.8% increase in RevPAR. For Germany this may be explained by the increase in occupancy by +1.2 points (74.7%) (although Berlin, Frankfurt, Hamburg and Munich saw their occupancy rates drop), boosted by stable average daily rates at +0.1%, pushing the RevPAR up to €63.70 ex-VAT. Hungarian hoteliers, on the other hand, had to act on average daily rates by increasing them by +2.8% (€84.80 ex-VAT) to offset the OR down by -0.8 points.

Finally, with the smallest growth in results in the panel, the United Kingdom produced growth in RevPAR by +0.4% (£97 ex-VAT), average daily rates +0.1% (£11 ex-VAT) and a stable OR +0.3 points (87.3%). The economy segment saw its OR increase by +2.4 points, while hoteliers slightly decreased their average daily rates by -1.3%. Mid- and upscale segments lose ground in terms of OR, but maintain average daily rates allowing them to achieve a slightly positive RevPAR. 

Contrasted results at the rear of the pack

Greece's OR is down -2.2 points, but it nonetheless remains at 86.3%, just behind the United Kingdom. Average daily rates are up +2% (€136.20 ex-VAT) and dominate the panel. In the end, RevPAR fell -0.6% to 117.50 € ex-VAT and remains the highest among the European destinations studied.

With a 5-point drop, Latvia has the worst occupancy, but hoteliers nonetheless have an average OR of 82.9% and average daily rates were up +4.3%, resulting in a -1.6% decrease (€65.90 ex-VAT) in RevPAR.

The Czech Republic saw its OR drop by -0.4 points (77.4%), despite ADR down by -1.2%, resulting in a RevPAR down -1.7% to reach €54.10 ex-VAT.

The Netherlands came last in this panel with results full of contradictions. With a slight increase in OR of +0.6 point (84.9%) and average daily rates down -4.6% to €114.60 ex-VAT, the RevPAR fell -4.0% (€97.20 ex-VAT). 

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