Between the many conflicts taking place in the EMEA region and galloping inflation throughout Europe, the situation is not looking ideal. Nature may be turning red this October, but European hotel performances remain mostly in the green. Unsurprisingly, Southern Europe is once again doing well thanks to sunny weather. Northern Europe performed less strongly, with the exception of a few countries including the Czech Republic.
In terms of occupancy, European hotels recorded a similar level to October 2022 (73.1%). This is neither a good nor a bad result, but it is still below the 2019 levels for the same period (-3.7 points).
There is more movement in RevPAR, which stands at €90.9, up 5.1% on 2022 and 19% on 2019. Once again, this trend is being driven by a 5.2% rise in prices across the continent (+25% vs. October 2019).
Only the upscale segment recorded positive growth in occupancy (+1.8 points), while the budget segment saw its occupancy rate fall by 1.6 points between October 2022 and October 2023. However, compared with 2019, it is indeed the upscale segment that has seen the biggest fall in occupancy rates (-4.7 points).
Conversely, it is the budget segment that is showing the strongest growth in terms of average daily rate (+6.9%) and the upscale segment the weakest (+3.7%). As upscale properties increased their prices sharply in the wake of the health crisis, they now have less room for manoeuvre than other segments.
Overall, the upscale segment continues to fare best, with RevPAR up by 6.3% compared with October 2022 and by 20.8% compared with October 2019. Nevertheless, all segments have exceeded their pre-Covid activity levels.
A closer look reveals that only Greece exceeds its pre-Covid occupancy levels (+1.6%). However, the trend between 2022 and 2023 looks much more positive for all countries, with the exception of Poland (-1.4 points), France (-1.2 points) and Germany (-1 point).
Conversely, Hungary and the Czech Republic performed well, with occupancy rates up by 8.3 points and 5.3 points respectively. With the exception of Poland (-1.4 points), all the Eastern European countries seem to be regaining ground at the start of the autumn period. Latvia is no...
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