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November 2020: the European hotel industry to be hibernating again

After a month of October marked by a relapse and the tightening of sanitary measures, November did not spare the hotel sector in Europe. Due to the pandemic’s second wave, the continent locked itself in to limit the arrival of a new peak of contamination, once again plunging European hotels into a particularly difficult situation.

For the entire zone, the occupancy rate was twice as low as the previous month, at 15.8% (-56.1 points), and the average daily rate deteriorated to €64 excluding taxes (-35.5%). Thus, European RevPAR amounts to only €10.1 excluding VAT, a drop of 85.6% compared to the level of November 2019.  

Among the segments, high-end continues to record the largest loss, followed by mid-range. Their occupancy rates declined by 64.3 points (9.3%) and 58.3 points (14.2%), respectively. Their average daily rates also fell by 31.9% (€69.5 excluding taxes) and 27.5% (€99.3 excluding taxes), respectively, leading to a drop in RevPAR of 91.4% and 85.8% compared to 2019. The economic and budget segments, the most resilient ones, still saw their occupancy rates deteriorate to 18.3% (-53.9 points) and 27% (-38.8 points), respectively. With average daily rates falling by 23.3% (€57.7 excluding taxes) and 15.3% (€43.2 excluding taxes), respectively, RevPAR for the economic segment fell to €10.6 excluding taxes (-80.5%) and to €11.6 excluding taxes (-65.3%) for the budget segment. 

 
 

If some destinations were faring better, especially those with a dynamic domestic market, the month of November is causing all markets to collapse. France (-47.4 pts. of OR / -82% of RevPAR) and Luxemburg (-59.5 pts. of OR / -80% of RevPAR) remain however the "least impacted", showing the "best" - or in other words not the worst - results.  

On the other side of the spectrum, some are still in distress. Countries such as Austria (-72.5 pts. of OR / -92.7% RevPAR), Belgium (-66.9 pts. of OR / -91.1% RevPAR) and the Netherlands (-67.2 pts. of OR / -90.5% RevPAR), are the biggest losers in the zone. Only the Czech Republic (-96.1% RevPAR) and Hungary (-92.2% RevPAR), whose tourist clientele relies mainly on foreign visitors, are even more impacted, as they have been throughout 2020.  

While countries such as Germany have recently announced a new general lockdown, the European hotel industry seems to have frozen for the long term. Hopes of recovery are once again being pushed back, and winter is shaping up to be one of the harshest winters for Europe’s tourism actors.

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