European Hotel Prices Are Higher Than Pre-Pandemic Rates
Hotels in Europe are predicted to be the “poster child” of recovery in the hotel sector in the next six months. Hotel industry specialist STR analyzed data, which states that average daily rates (ADR) are about 6% higher than pre-pandemic rates.
Ireland’s recovery rates are 21% higher than May 2019 levels. Portugal follows closely with 18% and Spain with 14%. Austria and Germany are the slowest European countries to rebound. This is due to COVID-19 restrictions in both countries.
Hotel occupancy rates are also rapidly heading towards full recovery, with an 80% improvement since the pandemic. Rates are expected to reach 90% recovery in the next few months.
STR managing director 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 [hotel business] faster than anybody can forecast using a model.”
Rossman expects European hotels to recover at the same pace as the US.
STR data reveals that COVID-19 is no longer the main reason why people don’t travel. As a result of inflation, the cost of flights and hotels are the biggest reason why people aren’t traveling.
