European hospitality results for 2011 are positive but concern remains
A question mark stands above the hotel industry’s positive indicators for 2011. It refers to the prolongation of the slump observed in the hotel business at the end of 2011. In Scandinavia this should be of some concern, according to European Cities Marketing.
The degradation of national economies, concern about the impact of debt, and austerity measures are having a clear effect on areas in Europe where occupancy rates and average daily rates fell into the red in December. Past experience says that the midscale and upscale segments react more visibly to changes in economic climate. And in cities where the weight of these categories dominates (Scandinavia, Central Europe, Spain, Italy), the stabilising effect of the economy hotel segment is often impotent.
Last year closed with positive indicators for the hotel business throughout the European Union, with an average of 5.6% growth in RevPAR as a result of increased occupancy combined with growth in average daily rates. Yet the dynamic that was seen until spring 2011 slowed in the last quarter.
[pictured: Queen room, Scandic Frimurarehotellet, Linköping, Sweden; photographer Åke E:son Lindman; courtesy Scandic Hotels]