Independent Hotels In Europe Outpace 2022 Performance, According To RoomRaccoon
The report offers in-depth insights into the evolving landscape of Europe's independent hotel industry
RoomRaccoon, the leading hotel management system for independent hotels, has released its annual report, RoomRaccoon Report 2023: Unpacking Europe's Independent Hotel Industry Trends. The report analysed hotel performance data from thousands of independent hotels in key source markets in Europe to see how the industry is changing.
The report reveals that travel demand remains high in 2023, with the average occupancy rate outpacing 2022 levels by 10%. Revenue per available room (RevPAR) in 2023 increased by 20% compared to 2022, growing from €55 to €66. The data reflects a spike in RevPAR over the European summer season, peaking at €98 in August.
Other key findings include:
Peak season is extended: The traditional peak season has seen an extension, with high occupancy rates persisting through September (65%) and October (58%) in 2023.
OTA and Direct Bookings have equalised: Online Travel Agencies (OTAs) and direct bookings now share an almost equal share of hotel reservations, with OTAs accounting for 49% of hotel bookings. In comparison, direct bookings make up 51%.
Travellers are holidaying more frequently: Despite a decrease in the average length of stay in 2023, it's a sign of a change in travel patterns rather than a decline in travel. The data indicates that travellers are taking more frequent, shorter trips, which may be attributed to the desire for quick getaways. This is evident in the number of bookings made by domestic travellers in 2023, averaging 43%.
Hotels are finding new ways to generate revenue: The report highlights that independent hotels have been innovative in diversifying their revenue streams. Beyond traditional room bookings, independent hotels increasingly offer unique experiences, services, and amenities to attract guests. Additionally, many hotels are expanding their event and conference facilities, including upselling parking spaces, to enhance their revenue-generating capabilities.
Commenting on the data, RoomRaccoon’s CEO and Co-Founder, Tymen van Dyl, says: “Independent hotels should be encouraged by the sustained strength of travel intent across European destinations. However, with unpredictable seasonality, relying on historical data could result in hotels underpricing their rooms and missing out on additional revenue. By implementing AI software that can understand supply and demand, hoteliers can have a dynamic pricing strategy that considers fluctuating demand and ensures that they are generating the best possible rates across all sales channels.”
Download the RoomRaccoon Report 2023: Unpacking Europe's Independent Hotel Industry Trends to discover key insights and opportunities to inform your hotel business strategy in 2024.