August 2012 : Europe stays in olympic shape

5.7% growth in the Revenue per Available Room, RevPAR, is a veritable leap over the small variations seen since the beginning of the year. And yet, we may fairly quickly observe that this progress is not the result of increased occupancy in Europe’s hotels, but rather thanks to the net increase in average daily rates, thanks to exceptional circumstances in a small group of countries. The overall trend is a decrease in occupancy rate, although it remains high for August, and a fairly contrasted change in average daily rates depending on geographic area that remains globally positive. The Olympic Games in London, the German exhibition and fair market and Vienna’s MICE activity successfully brought indicators into the green. While these occasional needs must be met, the sector’s outlook remains morose due to a crisis that is worsening and standing in the way of national business travel and decreasing the volume of intra-European travel. Hotel activity has rarely been so contrasted in Europe as when the economic situation is crumbling just about everywhere. Very particular circumstances for each market have justified these divisions. Naturally the United Kingdom is taking advantage of the effect of the Olympics that placed its capital London in the front line of the media. It may be observed that the Olympics did not result in a higher occupancy rate, and even saw simultaneous cancellations by summer regulars. But the prices practiced around the Olympic Park and nearby boosted average daily rates by more than 20%. Performance in Germany was relatively more modest, but more solid with its calendar of exhibitions and fairs in the Länder. The growth engine is doubly fueled by ORs and average daily rates since the beginning of the year. The same is true for Austria, where results rely on the capital’s convention activity...