Is it the cold that paralysed tourists by preventing them from moving around or getting to the old continent? Or did they simply prefer to stay at home celebrating this holiday season with their families? Who knows? Only one thing is certain: European hoteliers ran at a slower pace this month.
The occupancy rate (OR) was stable (+0.0 point) at 62.7% overall, and the average daily rate (ADR) keeps rising up at a steady rate (+1.8%) to €94.00 excluding VAT. Revenue per available room (RevPAR) continues its slow ascent, up +2.7% (€59.00 excl. VAT).
As in November, it is once again the Top and the Bottom of the hotel supply that reveal the best RevPAR growth: +4.2% (€89.20 excl. VAT) for Upscale and +3.9% (€28.70 excl. VAT) for Budget. The Economy (+0.6%) as well as the Midscale (+1.3%) segment show neutral growth in their revenue per available room, which is respectively €44.20 excl. VAT and €54.90 excl. VAT.
RevPAR is driven upwards by ADR growth in Upscale (+2.8%) and Budget (+2.4%). Daily rates are stable in Midscale (+0.7%) and Economy (+0.4%). Also, no segment is gaining market share: +0.8 percentage points (OR 58.4%) for Budget, +0.2 pts (63.0%) for Economy, +0.4 pts (62.7%) for Midscale and +0.9 pts (64.4%) for the Upscale.
Across the the year (Year To Date - YTD results), only the Budget segment pushes its RevPAR up (+3.4%) to reach €34.40 excl. VAT. Actually, it changes at almost the same rate as the others: the Upscale (+2.4%), the Eco (+2.3%) and the Midscale (+2.1%). The same is also true for occupancy, which did not exceed growth by +1 pt in any segment. The annual trend is therefore towards stable performance for the European supply overall.
Only a few destinations show real growth. Two destinations have a positive double-digit RevPAR trend: Hungary (+18.5%) , which had the best growth for the second consecutive...
This content is for subscribers only. You have 80% left to discover.
Every week, the HON team brings you an expert look at the world of hospitality.
By becoming a member, you will have access to a complete ecosystem: exclusive content, jobs, etc.
BECOME A MEMBERAlready a member ? Login
