European accommodation barometer: economic optimism among hoteliers and landlords at the highest level

Author  HrTurizam.hr

24. May 2024.

Buoyed by continued industry resilience, European hoteliers and landlords expressed their highest level of economic optimism since 2022 in the latest edition of the European Accommodation Barometer.

The survey, published by Booking.com in collaboration with the German online data collection platform Statista, revealed that 63% of respondents believe that the economic situation of their business will develop positively or very positively in the next six months. This is an increase of four percentage points, the fourth consecutive increase since the first report of the Barometer in 2022. Another two-thirds or 65% of them reported positive business development in the past six months, and the percentage of those who share negative expectations fell to only 4% - in in sharp contrast to 17% in 2022.

With an eye on the peak summer season, attention is focused on the needs and wants of potential guests, with 50% of European accommodation facilities reporting the trend of shorter stays as a preference among guests, an increase of six percentage points since the last Barometer.

Almost half of respondents (48%) report that their guests are booking more in advance, while 45% point out that their guests are now booking cheaper rooms. The latter corresponds to almost half of European accommodation capacities, which record a growth in average daily prices (48%) and a jump in occupancy rates (49%). Perhaps most significantly, 46% of respondents report that guests are opting for more restrictive cancellation policies, an increase of 15 percentage points since the last survey.

There are still a number of macroeconomic and microeconomic challenges that hoteliers continue to face: staff costs (65%) and the lack of skilled workers (61%) were top of mind for many, while other factors such as a potential tax increase (58% ), geopolitical uncertainties (55%) and bureaucracy (53%) identified as potential economic risks for European hoteliers. Despite this, European accommodation also embraces a host of opportunities to improve the guest experience: investing in style/aesthetics (69%) and comfort (67%) ranked high among priorities, followed by encouraging repeat visits (67%), and improving marketing on social networks (66%).

Sustainability remains high on the agenda for many, with 41% of respondents saying they are concerned about climate change and the impact it will have on their business over the next three years, and 45% intending to allocate nearly a quarter of their planned investment to improvements in this area .

The motivations are varied: 67% will invest with the hope of achieving long-term cost savings, which likely correlates with 78% of those who see energy costs as the number one risk to their business. Meanwhile, the recent legislation is probably on many minds given that 51% intend to invest to meet government requirements and 48% to obtain third-party certification - something also seen as a big opportunity for almost half (49%) .

"It is incredibly encouraging to see the fourth edition of the European Accommodation Barometer reveal continued growth in economic positivity, with European hoteliers sharing great optimism ahead of the peak summer season. However, it is crucial that we continue to dig deeper into the potential obstacles they still face and consider how best to , as an industry, we can work together to ensure the continued growth and success of European hoteliers and landlords", He said Peter Lochbihler, Senior Director of Public Relations, Booking.com. 

Sources: Booking.com i The report of Statista

Author  HrTurizam.hr

24. May 2024.