MKG report June 2022

MKG report June 2022

At the dawn of the summer of 2022, the European hotel industry is turning the page on the Covid years, ready to enter a new chapter: many countries have finished recovering from the health crisis, while others are finishing off their backlog.

With the first holidays starting, the European hotel industry is doing well with RevPAR 5.5% above its pre-Covid level. This performance is driven by an increase in the average price (+12.1% compared to June 2019), while the occupancy rate, which is only 4.7 points below its pre-crisis level, is recovering more slowly but surely.

This trend of RevPAR driven by average price despite occupancy rates still slightly or moderately below 2019 levels is a trend that concerns all European countries.

All European hotel ranges are now benefiting from growth in their RevPAR. This growth is being driven by price increases while occupancy is still lagging slightly. The top and mid-range segments are more exposed to this difference in occupancy rates, but the top segment, thanks to a 17.2% increase in the average price, manages to post the most sustained growth (+7.4% compared to its 2019 level). The budget and economy segments are less affected by the occupancy lag (-3.1 and -3.2 points), but their average price increases of 7.8% and 9.2% enable them to post RevPAR growth of 3.7% and 5.0%.

It is now clear that the heavyweights of European tourism have turned the page on the health crisis and can look to the future and the new trends, those born of the Covid years, which will structure the hotel industry of tomorrow.