June 2023: European hospitality stays on track

All ranges are still "benefiting" from inflation, particularly the upscale segment, which this month posted a growth differential of +30% vs. June 2019, followed by budget (+23.9%), economy (+22.8%) and midscale(+21.7%). While ADRs are clearly ahead, in terms of occupancy, all ranges are below their pre-COVID levels. Upscale is still the segment furthest behind its pre-crisis standards (-4.6 points), despite the return of foreign travelers.

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On a country-by-country basis, only Luxembourg (-0.7%) and Latvia (-18.4%) show negative activity performances relative to June 2019.

Leading the way this month are Italy and Greece. Italy, with a 43.6% lead in terms of RevPAR, definitively confirms its recovery. ADRs have grown by 45.6%, but visitor numbers have yet to quite reach 2019 levels; yet some Italian cities, such as Venice, are currently threatened by overtourism.

The mood is also upbeat in Greece, where RevPAR is up 35% thanks to good visitor numbers - the only one on the continent to return to 2019 standards (+0.8 points) - and ADRs that are also up (+33.7%).

Hungary climbed to third place on the podium, with a 30.2% increase in activity, but results were still impacted by high inflation, combined with the freeze on EU funds, which is affecting the country. With its objective of bringing inflation down to single digits by the end of the year, this is a case to watch over the coming months. Poland is also closely following this trend, with RevPAR growth of 26.9%.

Performance is also encouraging in France, which is relying in particular on the strength of its domestic tourism. The country posted a 26.2% increase in activity, although its occupancy rate is still slightly below that of June 2019 (-1.9 points).

Also buoyed by domestic tourism, Germany at...