News & numbers
Although the Mediterranean suffered through a serious summer heatwave, Italy continues to trend as a European destination of choice according to STR’s latest report.
The boot stands tall D
uring the summer months, Europe experienced a surge in tourist activity, attracting millions of travellers from around the world who come to explore its sunny locales, savour its diverse culinary offerings and immerse themselves in its rich culture.
This robust and consistent demand provides hoteliers in popular summer destinations with the assurance to plan their strategies effectively. Nonetheless, this summer has witnessed an exceptional outlier in this trend, with Italy emerging
Italy led in June rates
ADR & RevPAR across key European destinations, June 2023 300
ADR RevPAR
as a destination that has surpassed all industry expectations
In Europe, specific markets and countries consistently experience robust demand from June to August. Recent data provides concrete evidence of this trend, as seen by the impressive monthly occupancy rates achieved in June and July across prominent destinations such as France, Greece, Italy, Portugal and Spain. These key markets recorded occupancy rates ranging from 74% to 80% in June and 73% to 80% in July. These figures not only underscore the high demand for accommodations but also reveal a relatively balanced distribution of guests between southern and western Europe.
200 100 0 France Greece Italy
Italy rates remained strong in July ADR & RevPAR across key European destinations, July 2023
300 Portugal Spain ADR RevPAR 200
The stallion of Europe Italy’s remarkable success becomes particularly apparent when examining its top-line revenue metrics. In June, the country achieved an impressive average daily rate (ADR) of €271.84, while in July, it maintained a strong ADR of €263.89. This stands in stark contrast to Italy’s western neighbour, Spain, which secured rates of only €156.24 in June and €168.64 in July. Moreover, Italy excelled in terms of revenue per available room (RevPAR) at the national level. In June, Italy’s RevPAR reached €213.80, demonstrating the country’s economic prowess. In July, it maintained a robust RevPAR of €202.86. While Greece closely followed suit in June with a
100 0 France Greece Italy Portugal Spain
Italy’s luxury hotels significantly outpace last year’s performance ADR percentage change by class, 2023 year to date
ADR
25% 20% 15% 10% 5% 0%
Luxury class
Upper upscale class
10 Upscale class
Upper midscale class
Midscale class Economy class
RevPAR of €204.47, it surpassed Italy in July, achieving an impressive RevPAR of €240.52. These figures underline Italy’s financial strength in the hospitality sector compared with its neighbouring countries. Taking a closer look, it’s evident that rate plays a pivotal role in the impressive revenue performance of luxury-class properties in Italy.
In June, revenue managers at these high-end establishments achieved remarkable ADRs of €978.65. This figure saw a substantial increase of 26.6% compared with the previous year. In July, the trend continued, with ADRs reaching €1,031.85, reflecting a substantial uplift of 22.8% from the previous year.
A significant portion of this notable gain can be attributed to the return of travellers from the US, a key demographic known for its substantial spending on luxury travel experiences in Europe. ●
Hotel Management International /
www.hmi-online.com
Viacheslav Lopatin/
Shutterstock.com
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