STR, a hotel analyst, has revealed the latest data on hotel prices in Europe, which show an upward trend across the globe.
In the summer of 2023, hotel prices have shown the most increase, which was driven primarily by high rates on the continent in general.
As per the published data, the global average daily rate (ADR) for accommodations indicated a rise of 6.3% in the month of July, in comparison to the same month in 2022.
Meanwhile, the overall prices in Europe have further increased year-on-year by 13.4% in the same month.
Increasing hotel prices
According to STR, a moderate increase in the prices of accommodations has been forecasted. Consequently, this is not the end of the road, and prices will shoot up more in the coming years.
In the month of July, Jefferies, a popular investment firm, noted a significant increase in prices in France.
The average daily rate of the company has gone up by 87%, as compared to the numbers recorded before the coronavirus pandemic.
In addition, the average national prices displayed a 47% increase when compared to the same time period in 2019.
STR data
The published report by STR recorded the names of various countries that have shown substantial growth in prices.
These include Italy at the top with a 51% increase, followed by the United Kingdom, which recorded a 31% increase.
Meanwhile, hotel prices in Spain rose by 30%, and Germany revealed a growth of 18%.
However, the year-on-year growth in ADR was somewhat restrained, with Spain and the UK showing an increase of only 6%.
Germany, on the other hand, showed an even lower growth rate, which stood at 3%.
According to Jefferies, Europe has mostly recovered its hotel sector from the hit that it took during the coronavirus pandemic.
However, where occupancy rates are concerned, they are still being recorded below pre-pandemic levels.
Occupancy in July 2023 was 3.9% lower than the number recorded in July 2019. Moreover, this was only a 0.7% improvement from the same month in 2022.
Jefferies went on to say that hotel occupancy rates have stabilized, not just in Europe but throughout the world.
As of now, occupancy levels have plateaued between 2 to 3%, as compared to the figures recorded in 2019.
Meanwhile, STR data also revealed that revenue per available room or RevPAR was the strongest in the Asia Pacific Region, with a year-on-year growth of 36% in July 2023.
The Americas, however, displayed the smallest amount of growth as compared to 2022, with a rise of 1% in July.
Additional report
In September of 2022, another report was released by the American Express Global Business Travel, which indicated a rise in hotel prices by the end of 2023.
It went on to point out that European countries were expected to record the highest increase in hotel prices, as compared to others.
As per the report from the American Express Global Business, various destinations in Europe were predicted to show substantial increases.
These included Paris, Dublin, and Stockholm, each of which was forecasted to show an upward trend between 8 to 10% in hotel prices.
