STR Webinar COVID-19 impact on Europe hotel performance May 22

  • It is necessary to register to view the webinar.  The presentation itself commences at 4 minutes and lasts for 35 minutes ahead of a 10 minute Q&A session. Key points contained within the slides include: 
    • Data from a consumer survey conducted by STR suggests that at present propensity to travel internationally is still negatively impacted by the Covid-19 situation 
    • Consumer propensity to travel for business reasons continues to lag propensity to travel for leisure 
    • However, when asked what the biggest barrier to travel is at present “increased costs” is now the factor cited most often 
    • Despite the headwinds of inflation and the war in Ukraine it is anticipated that many destinations will continue to enjoy a strong recovery over the next six to nine months 
    • On a rolling 28-day basis Europe hotel occupancy is at 78% of its pre-pandemic equivalent for the time of year whereas room rates are at 106% of their 2019 level in nominal terms 
    • The number of passport renewals in China has collapsed to less than one million per annum suggesting that even once travel restrictions are eased by the Chinese authorities there may be a time lag before demand recovers 
    • Weekday demand is now picking up, an indication that business travel is starting to recover 
    • Poland, Ireland and the UK are the European markets where hotel demand is performing most strongly while the likes of Germany and Austria continue to see only a modest recovery 
    • At a city level so-called Gateway cities reliant on inbound and corporate demand had a weaker Q1 than did many other destinations 
    • Occupancy has recovered more swiftly in Economy than in Luxury properties, but rates have recovered more swiftly in the latter than the former type of hotel 
    • Extended stay demand has been outperforming other sectors, but the gap is now starting to narrow 

Link to STR webinar on European hotel performance May 2022