European Hoteliers Shift Expectations for Financial Recovery Timeline from 2021 to 2022, New Research Reveals
Research, conducted in July and published in the August edition of The Hotelier PULSE Report, a monthly industry insights report co-authored by Guestcentric and Great Hotels of the World, reveals that just 43% of European Hoteliers expect to financially recover to 2019 levels in 2021. This marks a 25,52% decrease from 68,52% who predicted this would be the case back in June's survey.
The results emerge as 84% of European Hoteliers predict a revenue loss of over 50% in 2020, compared to just over 77% who predicted this would be the case in back in June's survey.
"The industry's shift in mood is consistent with what our reservation data is telling us," observes Pedro Colaco, CEO of Guestcentric and Great Hotels of The World. "For instance, we initially saw bookings jump from minus 69% below zero in early March, to 46% of 2019 levels in late May. "
"Since early June however, bookings have plateaued, and we are still between 40% and 50% of 2019 levels as we approach August. Therefore, it's unsurprising that Hoteliers are adjusting their expectations significantly," he continued.
Interestingly, however, the industry's expectation for total occupancy per month has increased by nearly 10% to over 37% for August 2020. This is in comparison to the 27,96% total occupancy average expected for July.
Colaco also notes the significantly shorter booking pace between the months of June and July, noting that this is very likely a ripple effect of wavering travel policies, which in turn are driving customers to hold off on booking accommodation right down to the very last minute before they are due to travel.
"Our data shows that of all bookings made in June 2020 (22% of bookings over the same period in 2019), over half were for stays in the same month. This could very well be due to the persisting uncertainty in regards to travel, as we saw when the UK established a no-quarantine airbridge with Spain, only to withdraw weeks later."
"What will happen in the months to come, only time will tell," Colaco adds. "However, we are all still adjusting to the new normal and there will still be disruptions along the way. So now, more than ever, it is vitally important that the industry continues to band together and find ways to continue engaging local markets and customers."
"It's also evident that people are eager to travel but waiting right up until the very last minute to book accommodation. It will be interesting to see how August plays out," he concluded.