Posted tagged ‘ECM-MKG European Destinations Observatory’

Hotel industry in Europe keeps a positive trend

July 6, 2016

Hotel industry in Europe keeps a positive trend for the first quarter of 2016 despite terrorism fear

The latest ECM-MKG European Destinations Observatory report* points out that for the first quarter of 2016, European hotels keep up the positive trend with a 0.6 point increase in Occupancy Rate and 1% growth in Average Daily Rate** allowing the RevPAR*** to improve by 2%.

Despite widespread growth, contrasts can be observed when it comes to individual country performance. Factors such as the migrant crisis – affecting tourism in certain destinations – and the security environment following the Brussels attacks in March impacted hotel performance in several key destinations across the continent.

While some capitals are affected by the terrorism fear…

As the city was directly hit by terrorism, Brussels’ RevPAR dropped by 7.4%, mostly due to a 5.5 points decrease in Occupancy Rate. Other European capitals, such as London and Berlin, were also affected by these events, raising doubts about European security in the eyes of foreign clientele.

At the same period France (except the capital) regained a growth track especially thanks to RevPAR improvement in the whole country: Reims (+13.1%), Lille (+8.2%) or Marseille (+7.4%), Paris is still recovering from the consequences of the November attacks on tourism with a RevPAR decrease by 9.2%.

… others seem to recover “market shares

Prague has reached a strong RevPAR, with 18.3% growth for this indicator. The organisation of several international medical trade shows in Prague significantly stimulated hotel performance. Amsterdam was also among the frontrunners in the European landscape (+17.1% in RevPAR), as hotels benefitted from the organisation of the Fespa Digital Amsterdam and other international business events. Budapest also registered positive results, with a 10.7% increase in RevPAR due to gains in Occupancy Rate (+2.7 points) and Average Daily Rate (+5.1%). Polish hoteliers benefited from the European men’s handball championships at the beginning of the year. Warsaw and Poland report increases in the RevPAR by respectively 1.3% and 6.1% on the first quarter. Austria posted a RevPAR increase by 5.7%, it is better than the capital, Wien (+0.6%).

In Northern Europe, Edinburgh observed a RevPAR increase by 7.5%, a trend totally different from London or Liverpool which decreased by 4.5% and 1.8% respectively.

Finally, performance across Southern Europe continued to improve, boasting higher results than in the 2015 first quarter. RevPAR in Lisbon grew by 2.4%, it strongly increased in Spain with San Sebastian (+34%), Zaragoza (+25.9%), Malaga and Seville (+21.7%), Barcelona (+16%) and Madrid (+12.8%). Rome and Turin are on a positive trend, with RevPAR increase by 2.4% and 4.2%.

All ECM members have exclusive access to the complete ECM-MKG European Destinations Observatory report with all the graphs and analysis.

#ECM #EuropeanCitiesMarketing #MICEnews #MICEmedia

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European Cities Marketing and MKG confirm the good health of the hotel industry

December 2, 2015

European Cities Marketing and MKG confirm the good health of the hotel industry in Europe since the beginning of 2015

The results from the latest ECM-MKG European Destinations Observatory report* are in.
With an occupancy rate of 71% throughout the European Union at the end of three quarters in 2015, hotel chains gained 2 points over 2014 at the same period. Performances on the continent show an increase over last year thanks to growth in the ADR** (+3.5%) and a RevPAR*** up by 6.4%. Some destinations produced better results, depending on their geographic location. Once again the assortment of events held in some cities played a key role in the success of their performances.

Southern Europe cities are performing well. Italian cities’ results are driven by events.
The hospitality industry of San Sebastian, Seville, Zaragoza and Bilbao, all in the top 10 of RevPAR growth, is having a good year. Madrid and Malaga are following this trend too, with double-digit RevPAR growth by 11.8% and 12.1% respectively.
Meanwhile, with “EXPO Milano” (from May 1 till October 31), the city of Milan expects to welcome over 20 million visitors. For the moment, the city has experienced the strongest growth in RevPAR in Europe. Other cities in Italy record good results too with Venice and Turin; the city of romance saw its ADR rise by over 19% (helped by the “Biennale di Venezia“) leading to a RevPAR up by 17.3%, while the RevPAR in the capital of the Piedmont region increased by 12.3%. Bologna records similar results as Turin, but Rome is the only Italian city in this sample to be on a downtrend (RevPAR: -7.5%).

Following the trend of the first semester most Western Europe cities have good RevPAR results. UK main cities shine by their occupancy rates.
The United Kingdom cities continue to keep the lead in terms of occupancy rate with 84.4% for London, the main business destination in Europe, while Edinburgh is still in second position. But, from the beginning of the year, the RevPAR for these two cities followed a negative trend due to respective decreases in ADR by 4.5% and 4.6%.
In Germany, only Dusseldorf and Nuremberg recorded a downtrend in RevPAR. With solid business tourism, Stuttgart (Intergeo 2015), Cologne (IAW 2015) and Berlin (CMS 2015) saw their RevPAR increase.
In France, only Paris is on a slight downtrend, with a RevPAR down by 0.9%. Other cities in the country record good performances, Lille organised “EuroBasket 2015“, Cannes and Nice welcomed events and congresses, Bordeaux and Lyon had a good summer after business events in the first half of the year.
Benelux stayed on the right track from the beginning of the year, with a significant number of political events and meetings to explain its good performance. Brussels and Amsterdam respectively recorded a 6.4% and 7.3% increase in their RevPAR, while Luxembourg has the strongest RevPAR growth in this area (+14.8%).

Scandinavian and Eastern Europe cities also stay on a positive trend.
In Scandinavia, all cities are on a positive trend except Copenhagen and Helsinki showing a relative stabilisation in their RevPAR. Oslo and Stockholm record a combined increase in occupancy rate and ADR.
In Eastern Europe, international events improved results; Warsaw with “International Building & Interiors Exhibition 2015” produced growth in its RevPAR by 9.5%, since the beginning of the year. But, Budapest records the best RevPAR increase in this area (+12.5%) while Prague’s results remained stable (+0.6%).

All ECM members have exclusive access to the complete ECM-MKG European Destinations Observatory report with all the graphs and analysis.

Growth in European cities’ hotel industry well established for the first semester 2015

September 24, 2015

Growth in European cities’ hotel industry well established for the first semester 2015
The results for first semester of 2015 from the ECM-MKG European Destinations Observatory report* confirm the long-term growth for Europe’s hotel industry.

With an occupancy rate of 67.5% throughout the European Union in the first semester, hotel chains gained 1.8 points over 2014 at the same period. The performances on the continent show an increase compared to last year with the Average Daily Rates (ADR**) (+3%) and the Revenue per Available Room (RevPAR***) (+5.8%). Some destinations produced better results depending on their geographic location. The variety of events held in some cities played a major role in the success of their performances.

Good RevPAR results for most Western Europe cities.
With solid business tourism, Germany experienced a strong increase in its ADR: Stuttgart (MedTec Europe 2015), Hanover (Hannover Messe 2015) and Cologne (FESPA 2015) know a RevPAR increase by more 13%. Other German cities such as Leipzig, Berlin and Hamburg are following this trend too. Currently, Düsseldorf after a year 2014 with international events meets some difficulties, 2015 seems to be less attractive for the business meetings.
Many cities in France (like Lyon, Bordeaux, Toulouse or Nice) presented good results thanks to the organisation of many international business events (VINEXPO in Bordeaux, SIRHA in Lyon, MIDEM or MIPTV in Cannes) or medical congress in Nice. Paris is the exception with a negative change in its RevPAR (-0.7%).
Benelux keeps on the right track from the beginning of the year; the number of political events and meetings explains its good performance. Brussels and Amsterdam recorded respectively an 4.9% and 3.4% increase in its RevPAR, Luxembourg have the highest RevPAR progression in this area (+12.5%).

Northern and Eastern Europe cities perform well thanks to international events. But Scandinavia is on a downtrend.
In terms of occupancy rate, the United Kingdom is keeping the lead with London, the biggest business place in Europe and Edinburgh in second position.
In terms of RevPAR, Copenhagen and Budapest got the highest results thanks to business and sport events (EuroBasket Women in Hungary). Prague, with the Ice Hockey World Championship 2015, records a positive RevPAR progression, when the city had a strong decrease on this indicator 3 months ago. Vienna (with EASL’s International Congress 2015) and Warsaw (with 2015 UEFA Europa League Final and World food Warsaw 2015), improved their RevPAR respectively by 3.2% and 8.4% since the beginning of the year.
Only Oslo stands out from its Scandinavian counterparts’ thanks to its ADR rise. Helsinki and Stockholm record a combined decrease in both occupancy rate and ADR.

All ECM members have exclusive access to the complete ECM-MKG European Destinations Observatory report with all the graphs and analysis.


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