MKG report March 2022

MKG report March 2022

The health situation, which is experiencing happier days, is favouring European hotel performance. This improvement is reflected in a gap in RevPAR between 2022 and 2019 that is narrowing over the months, symbolising a situation increasingly close to its pre-crisis level. However, some destinations are leading the way, while others are lagging behind.

At the end of winter 2022, the health context is increasingly favourable to the recovery of tourism in Europe. The end of the obligation to wear masks indoors, the suspension of the health pass, and the more flexible border controls for visitors from most countries in the world are encouraging the recovery of tourism in Europe. This is reflected in figures that are improving month after month.

This more favourable context makes it possible to post an overall RevPAR of "only" -16.6% lower than March 2019: the average price stands at +4% of its 2019 level and the rate of frequentation, although 14 points lower than its 2019 level, is also on a catch-up trend.

Compared to the previous month (February 2022 vs February 2019), all countries have seen a closing of the activity gap in March 2022 compared to March 2019. However, while the recovery in tourism is undeniable, not all countries have yet recovered their full tourism strength.

Regarding prices, all the ranges have almost returned to their pre-crisis level with only a 3% difference compared to March 2019. Specifically, with no change compared to 2019 top-of-the-range hotels have returned to their average price, and European budget hotels have even seen an increase of +1.9% compared to March 2019. Hotels in the mid-range and super-economy ranges follow suit with only -1.1% and -1.0% difference from their average prices posted in 2019. This shows that, after the Covid-19 tsunami, the hotel economy is gradually returning to its pre-crisis colours. The extended weekends in the spring and the arrival of fine weather should confirm this trend.