November Shows Robust Occupancy Rates and Attractiveness of European Destinations

• Seven of the 16 destinations studied reported over 74% occupancy in November, with Portugal leading the southern European region.
• Despite minor dips in Switzerland, France, and the UK, overall occupancy rates across Europe remain strong, with the Czech Republic posting the highest occupancy at 80.5%.

As reported by HSMAI Europe, Europe’s hotel and travel industry continues to show resilience and adaptability, as evidenced by November’s robust occupancy rates. A study of 16 destinations revealed that seven destinations were more than 74% full. Hungary was the only country to post double-digit growth in average daily rates, while significant price increases were also observed in Italy (+8.8%) and Greece (+6%).

At the lower end of the performance spectrum, Switzerland, France, and the United Kingdom experienced slight declines in occupancy rates (OR). However, these changes were minimal compared to November 2023. On a year-to-date basis, France was the only country to experience a decrease in occupancy levels, dropping by 1 point compared to 2023. Despite this, the occupancy rate remained positive compared to 2022, reflecting the significant impact of the 2023 Rugby World Cup on hotel bookings.

Southern Europe saw Portugal leading the pack, with total occupancy rising by 6.3 points, enabling hoteliers to maintain a dynamic growth rate of +4.7%. Spain and Italy also posted strong occupancy dynamics at +2.2 and +2.1 points, respectively. Italy and Portugal reported double-digit RevPAR (Revenue Per Available Room) growth, while Spain experienced a slight slowdown after a particularly successful year.

In Central Europe, the return of Russian customers boosted occupancy rates and overall performance. All destinations reported occupancy levels exceeding 64%, with the Czech Republic leading with an 80.5% occupancy rate, an increase of 8.6 points compared to November 2023. Hoteliers in the Czech Republic and Hungary have capitalized on these high occupancy rates, raising their average daily rates significantly.

Conversely, Latvia experienced a rise in occupancy accompanied by falling prices. The presence of 3,500 NATO soldiers and the press coverage of the Resolute Warrior exercise in mid-November brought significant attention to the Baltic nation.

As we move into 2024, new dynamics influence the hotel and travel industry. Corporate and public events are increasingly impacting business. For instance, the Taylor Swift tour in Germany had a notable effect. Despite some challenges, the overall outlook for the European hotel and travel industry remains positive, underscoring the enduring appeal of European destinations.