European accommodation operators more optimistic about the economy than ever before, new survey finds

Buoyed by the industry’s continued resilience, European hoteliers and vacation rental operators expressed their highest economic optimism since 2022 in their latest economic outlook. European Accommodation Barometer.

The survey, published by Booking.com in partnership with Statista, revealed that almost two-thirds (63%) of respondents believe their company’s economic situation will improve or become very good over the next six months. This is a rise of four percentage points and marks the fourth consecutive increase since the first Barometer report of 2022. A further two-thirds (65%) reported that business has performed well over the past six months and, most notably, a drop to just 4% shared negative expectations. This is in stark contrast to the 17% expressed for 2022.

With sights set on the peak summer season, attention is turning to the needs and wants of potential guests. 50% of European accommodations report a trend towards a preference for shorter stays among guests, an increase of 6 percentage points from the last survey. Nearly half of respondents (48%) indicate that guests are booking earlier, and 45% say that guests are booking cheaper rooms. The latter equates to nearly half of European accommodations reporting an increase in average room rates (48%) and higher occupancy rates (49%). Perhaps most importantly, 46% of respondents report that guests are opting for stricter cancellation policies, a shift from previous trends towards flexibility and an increase of 15 percentage points from the last survey.

There is a range of macro and micro-economic challenges hoteliers must continue to navigate. While staff costs (65%) and a shortage of skilled labor (61%) are the top concerns for many, other factors such as potential tax increases (58%), geopolitical uncertainty (55%) and bureaucracy (53%) were also identified as potential economic risks for European hoteliers. That said, European accommodations are also open to a range of opportunities to enhance the guest experience. Investing in style/aesthetics (69%) and comfort (67%) are high priorities, followed by attracting and encouraging repeat visitors (67%) and improving social media marketing (66%).

Sustainability remains a high priority for many, with 41% of respondents expressing concern about climate change and its impact on their business over the next three years, and 45% saying they intend to allocate almost a quarter of their planned investment to improvements in this area. Motivations vary: 67% are investing in hopes of saving money in the long term, which may correlate with the 78% who see energy costs as the biggest risk to their business. Meanwhile, impending legislation may be on the minds of many, given that 51% plan to invest to meet government requirements and 48% to obtain third-party certification. Third-party certification is also seen as a big opportunity for almost half (49%).

“It’s heartening to see that the fourth European Accommodation Barometer shows continued economic strength and that European hoteliers share great optimism ahead of the peak summer season,” said Peter Lochwiller, senior director of public affairs at Booking.com. “However, it’s important to dig deeper into the potential hurdles they still face and consider how we can work together as an industry to ensure the continued growth and success of European hotel and vacation rental operators.”

To download the full 2024 European Accommodation Barometer report and corresponding country versions, please visit:

statistics

www.statista.com/study/168036/2024-german-accommodation-barometer/

www.statista.com/study/168037/2024-italian-accommodation-barometer/

www.statista.com/study/168038/2024-netherlands-accommodation-barometer/

www.statista.com/study/168039/2024-spanish-accommodation-barometer/

www.statista.com/study/168077/2024-french-accommodation-barometer/

www.statista.com/study/168040/2024-swiss-accommodation-barometer/

www.statista.com/study/168041/2024-uk-accommodation-barometer/

Methodology: The survey was conducted by Statista and was carried out via telephone interviews from 6 February to 22 March 2024. 920 executives and managers from the European travel and accommodation sector participated in the survey. 80 respondents from each country and region of Austria, Greece, Italy, the Netherlands, the Nordic countries (Sweden, Denmark, Norway, Finland), Portugal and Spain, 90 respondents each from France and Germany* and 200 respondents from the rest of Europe (Poland, Romania, Belgium, Czech Republic, Hungary, Bulgaria, Slovenia, Slovakia, Ireland and Croatia) were interviewed.