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