Lodging in Western Europe

November 2022

Lodging was continuing its gradual recovery in Western Europe in 2022. While value growth was dynamic in this year, as in 2021, sales are still some way short of their pre-pandemic levels, given the size of the losses seen in 2020 due to the various COVID-19 restrictions introduced across the globe. The key to a full recovery is likely to lie in the wholesale return of business travellers as well as big-spending tourists from important source markets like China or the US.

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Key findings

Gradual recovery continues to be seen in 2022

Western Europe’s lodging market lost more than half of its value due to the pandemic in 2020. While recovery started immediately from 2021, despite the continued presence of the COVID-19 virus, and continued in 2022, it is expected to take some time for tourist numbers and therefore also lodging earnings to return to their 2019 levels. Short-term rentals will also continue to represent competition for hotels, both chained and independent.

Further digitalisation being seen in lodging

Lodging continues to digitalise, with many operators launching new digital services and solutions, looking to create a seamless online and offline customer experience. For example, seamless tokenised payment systems that are recognised throughout a hotel’s infrastructure avoid the need for guests to have to use their card for each transaction or interaction with its digital systems. As well as reducing the need for staff involvement and providing greater convenience to guests, such systems also allow hotels to gather information about their guests, which can be used to improve their services and provide more tailored solutions.

Online sales will soon be more than double offline’s

Online value overtook offline value back in 2016, and online has continued to outpace offline since then, with more of the same expected for the coming years. The rise of short-term rentals has also helped accelerate growth in online bookings, while, being outperformed by online intermediaries, traditional intermediaries have been working to increase and improve their online presence.

Sustainability likely to be a growing concern

The focus on sustainability will continue growing in line with rising environmental concerns, with lodging operators increasing investment in waste reduction, water and energy conservation, plastic-free products and the offer of local produce. Sustainability could also offer lodging operators competitive advantages in terms of standing out to environmentally-conscious travellers, who are growing in number across the region.

Scope
Key findings
Western Europe remains a major lodging market despite COVID-19 losses
Positive growth expected in 2022-2027 after the COVID-19-impacted historic period
Race to recover lost sales for all countries in the post-2020 period
Short-term rentals the only channel to record a positive CAGR over 2017-2022
Turkey most dynamic over 2017-2022
Full recovery from the pandemic is proving to be a gradual process
Lodging has a fragmented competitive landscape
Airbnb makes major gains during the pandemic
Whitbread and Logis de France are single-market operators in the top 10 players
Short-term rental players make up the top three lodging brands
Positive value growth expected throughout the 2022-2027 period
Online transaction value growth will continue outpacing the offline value performance
Austria: Market Context
Austria: Competitive Landscape
Belgium: Market Context
Belgium: Competitive Landscape
Denmark: Market Context
Denmark: Competitive Landscape
Finland: Market Context
Finland: Competitive Landscape
France: Market Context
France: Competitive Landscape
Germany: Market Context
Germany: Competitive Landscape
Greece: Market Context
Greece: Competitive Landscape
Ireland: Market Context
Ireland: Competitive Landscape
Italy: Market Context
Italy: Competitive Landscape
Netherlands: Market Context
Netherlands: Competitive Landscape
Norway: Market Context
Norway: Competitive Landscape
Portugal: Market Context
Portugal: Competitive Landscape
Spain: Market Context
Spain: Competitive Landscape
Sweden: Market Context
Sweden: Competitive Landscape
Switzerland: Market Context
Switzerland: Competitive Landscape
Turkey: Market Context
Turkey: Competitive Landscape
UK: Market Context
UK: Competitive Landscape

Travel

Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.

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