The European hotel and accommodation sector is preparing for a historic year. Economic sentiment among European hoteliers is in many places exuberant, reflecting two consecutive 6-month periods of strong growth in occupancy and average daily prices as well as a positive outlook for the future. In fact, nearly half of European accommodation businesses expect 2023 to be the year of the highest revenue in the history of their establishment. To put it in three words: Travel is back!
The Summer 2023 edition of the Booking.com-Statista European Accommodation Barometer sees a sector that continues its strong recovery from the impact of the COVID pandemic and which is on track to a record-breaking year in many places.
Across Europe, 46% of surveyed accommodation businesses expect 2023 to be the year of highest revenue to date. Revenue outlook is the most positive in Spain and Greece, where two-thirds of surveyed businesses expect the highest revenue year in the history of their establishment. This is no coincidence as both countries are a favorite among summer vacationers and consumers continue to splurge on leisure travel post-COVID. As a result, 59% of beach or seaside establishments expect 2023 to be their record year and almost three- quarters (73%) of 5-star hotels are bound to set a new benchmark. More generally, 57% of accommodations see the higher appreciation of travel as one of their biggest business opportunities.
Over the past six months, 60% of European accommodation businesses saw an increase in occupancy levels, up 2% from the previous period. At the same time, 51% experienced an increase in room rates, likewise up 2% from the previous period. This uplift may sound modest, but that’s not the core story, it’s the second consecutive six-month period of impressive growth that’s remarkable.
As a result, 71% of accommodation businesses characterize their development over the past six months as good or very good and 61% view their current economic situation as good or very good. In contrast, only 6% of hoteliers saw a negative development over the past six months and 5% characterize their current economic situation as negative. Looking ahead, 49% believe the next six months will bring a positive or very positive development, with only 10% of businesses having a more negative outlook. 2023 truly has the potential to be a historic year for the European accommodation sector.
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