European hotel prices are currently 6% higher than pre-pandemic times, according to hotel industry specialist STR, a provider of premium global data benchmarking, analytics and marketplace for the global hospitality industry.
In particular, Ireland’s hotel rates are already 21% higher than they were during May 2019. Portugal’s daily rates stand at an average of 18% and Spain at 14% higher.
Germany and Austria in particular are the slowest European countries to rebound in terms of hotel prices, according to STR’s research.
Hotel occupancy rates are also already showing at least an 80% improvement in numbers since the onset of the pandemic. STR predicts that figure to rise to 90% within a few months, pointing out remarkable progress by the UK, Poland and Ireland in particular.
STR MD Robin Rossman says: “There is still so much pent-up demand. We’ve already experienced this for leisure travel, and it’s the same for business travel — and this is increasing week by week. For the next nine to 12 months I believe pent-up demand will drive business faster than anybody can forecast using a model.”
Furthermore, among key hotel markets in Europe, Paris was the only one to achieve gross operating profit per available room (GOPPAR) in March that was 100% of the 2019 comparable. After two consecutive months with negative levels, due largely to the impacts of the Omicron variant, that GOPPAR of US$117,26 (R1 847).
Also reporting significant month-over-month improvement, London posted a March GOPPAR of US$90,82 (R1 430). That level was 87% of the pre-pandemic comparable. Amsterdam’s GOPPAR was 68% of the 2019 comparable, up from -31% in February. In addition, both London and Amsterdam saw their highest GOPPAR levels since December 2019.
While improved, Berlin’s GOPPAR remained in negative percentages for a third straight month. Moscow was the only key market in Europe to show lower profitability month on month.