Hotel Key Performance Indicators Fail to Echo Europe’s Overtourism Control Measures

• Despite measures to curb overtourism in Europe, hotel occupancy rates remain high, indicating continued strong demand for travel to these destinations.
• High occupancy rates have driven strong growth in average daily rate (ADR), although some markets have seen pressure to minimize ADR premiums to maintain demand.

The surge in post-pandemic travel led to concerns about overtourism across Europe in 2023, prompting various countermeasures. However, data from 2024 suggests that these measures have not significantly impacted hotel performance.

The volume of travelers to Western Europe has returned to pre-pandemic levels, with tourism making up 10% of GDP. Hotel occupancy rates remain high, with Edinburgh, Dublin, and London reporting the most nights with compression-level occupancy. Some cities have seen a decline in the number of compression nights, but overall, occupancy rates remain consistent year over year.

High occupancy rates have led to a surge in average daily rates (ADR), although the relationship between occupancy and ADR varies between markets. Some cities, such as Athens, Venice, Lisbon, and London, have seen a more linear relationship, while others have seen significant ADR jumps at high occupancy rates. However, some markets have felt pressure to minimize ADR premiums due to price sensitivity among leisure travelers.

Despite protests against overtourism and measures such as increased lodging taxes and tourist fees, demand for travel to these destinations remains high. Despite these measures, cities such as Venice and Amsterdam have seen increased visitor numbers. The data suggests that while these measures may have some impact, they are unlikely to deter travelers significantly. As such, most European markets anticipate continued occupancy growth in 2025.

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