Brexit, trade wars, populism and demonstrations... European countries suffered a number of blows in in 2018, impacting their economic activities and tourist flows. While there have been many challenges and most of them remain to be resolved, European hoteliers nonetheless show improved performance in 2018, demonstrating a certain appetite among tourists to continue to visit to the old continent, regardless of the weather.
2017 was the year of the OR: +2.2 points overall.
2017 succeeded in combining an occupancy rate up by more than +2% in each segment with a strong increase in ADR (+2.5% overall). 2017 was the symbolic year of market recovery and renewed confidence in the safety of European destinations. The hotel business was then emerging from a complicated period bruised by the terrorist attacks - which unfortunately have continued - and occupancy remained unchanged between 2015 and 2016.
#LTDC Vidéo : European Report 2017
While optimism remains high in 2018, hotel occupancy seems to have reached a more mature level and is stabilizing at 72.7% thanks to an overall 0.8 point increase. The time has come for the growth inn ADRs for hoteliers: +3.1% for the economy, +3.4% for the midscale segment and +4.7% for the budget segment.
2018 was the year for ADRs: +3.3% overall.
With few exceptions, the European hotel industry recorded a price increase in 2018 in all segments. If occupancy rates stagnated after a dynamic 2017, growth in revenues went undeterred in 2018.
The midscale segment represents the most fit segment with the highest increase in occupancy rates (+1.2 points) and average daily rates up by 3.4%. RevPAR growth grew by 5.1%, driven by business customers.
While the budget segment saw its prices increase most sharply (+4.7%), its occupancy rate slipped, unlike the other segments (-0.3 points). However, this decline is not part of a fundamental trend and last year the segment achieved the highest increase in OR (+2.4 points).
While in 2017 the budget and high-end segments were the drivers of growth, these extreme segments underperformed the following year in comparison to the mid-range and low-cost segments. The latter gained 1.0 points in occupancy rate and saw its average daily rates surpass the €70...
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