clear vision through glasses reflecting hoteliers forecasting revenue increase

Despite a disruptive start to this year’s summer season in Europe, our latest Hotel Business Barometer results reveal a positive shift in sentiment across the hotel industry.

NB: This is an article from GuestCentric

Below are some of the key hotel data updates from Hoteliers we surveyed and our market trends analysis, published in our September edition of The Hotelier PULSE Report

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Occupancy Performance & Revenue Forecast

The majority of Hoteliers surveyed met or exceeded the industry’s average occupancy forecast of 58% for August 2021. Over 64% of Hoteliers also expect to significantly increase revenue (by as much as 50%) in 2021 vs 2020.

Most of the Hoteliers surveyed now expect to financially recover to 2019 levels in 2021 or 2022. The majority of City Center Hotels and Resorts now expect to increase revenue in 2021 vs 2020, yet the majority of Bed & Breakfasts largely now expect their revenue to decline.

International Bookings Growth & Revenge Travel Expectations

As vaccinations accelerate and governments start to reopen their economies, our survey results also indicate Hoteliers seem to be cautiously optimistic that revenge travel may still happen in the remaining months of 2021.

Our market trends analysis also reveals consistent month-to-month growth in international hotel bookings, overtaking the domestic market which has dominated since the start of the Covid-19 crisis in 2020. Notably, however, the majority of Hoteliers surveyed still expect domestic and leisure travel to be the main contributors to recovery.

Direct Channel Growth

Showing the strongest performance for three consistent months against pre-pandemic levels, Hotel Direct bookings in August 2021 reached 153,57% of those over the same period in 2019. Overall hotel stays are also steadily growing to pre-pandemic levels. Notably, although overall stays have yet to reach this benchmark, the direct channel is the only one to have exceeded 2019 levels in August 2021.

In line with direct channel resilience and recovery during the recovery period, the majority of Hoteliers surveyed want to focus efforts on establishing their direct channels as the top source of reservations over the next 12 months and beyond.

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