Guestcentric Hotels in Portugal grow 16% in 2023Reading Time: 3 minutes
In a triumphant stride toward bolstering the Portuguese hospitality industry, Guestcentric, a global leader in hotel e-commerce solutions across 60 nations, proudly announces an impressive surge in revenue for Portuguese hotels, reaching €330 million in 2023.
Guestcentric, which expanded its portfolio by 200 hotels, witnessed a growth trajectory from €285 million in 2022 to an €331 million generated for Portuguese hotels in 2023, marking an impressive 16% increase. The number of reservations soared from 607,000 in 2022 to a staggering 640,000 in 2023. Concurrently, the nights booked reached 1.74 million in 2023 (vs 1.65 million in 2022), a commendable 5% increase in reservations and nights sold in 2023 vs 2022.
Despite initial concerns around the impact of cost increases and inflation on consumer spending in 2023, hotels across Portugal strategically adjusted pricing, witnessing a surge in their average daily rate from €172 in 2022 to €190 in 2023—an increase of 10% that played a pivotal role in the improvement of business performance in 2023 vs 2022. Essentially, Portuguese hotels prices exceeded the 5.3% inflation rate in 2023 (as reported by the Institutio Nacional de Estatística (Portuguese National Institute of Statistics) by nearly 5 percentage points.
In the broader economic landscape, the 16% growth for Guestcentric hotels in 2023 surpasses the country’s overall economic performance. According to Banco de Portugal, the wider Portuguese economy grew by 2.1% in the same year. Remarkably, the tourism sector, where Guestcentric operates, played a significant role, constituting around 20% of the GDP in 2023. The growth is not only a testament to the resilience of the hospitality sector but also underscores its pivotal role in the national economy.
A key driver of this success was the strategic investment by hotels in technology, resulting in the creation of high-value jobs within the sector. The increased adoption of technology, coupled with a reduction in reliance on third-party intermediaries for distribution, has proven instrumental in fostering the financial growth observed in 2023. This dual approach not only enhances operational efficiency but also positions the industry to adapt to evolving market dynamics in 2024 and beyond.
Furthermore, the notable increase in US tourists and the establishment of more direct flight routes to Portugal, combined with the strength of the US dollar in 2023, contributed significantly to the Portuguese tourism economy. This influx of international visitors, coupled with robust performance in domestic tourism, further fortified the sector’s contribution to the overall economy. In essence, Guestcentric’s achievement is not only a reflection of its internal strategies but also indicative of a broader positive trend in the Portuguese hospitality industry fueled by both domestic and international factors.
“Embarking on an extraordinary trajectory in 2023, Guestcentric has not only propelled our hotels to new heights but also set a precedent for the industry,” says Pedro Colaco, Guestcentric CEO. “As we look forward to 2024, the promises of more digital transformation for Portuguese hotels stand as a beacon, contributing to elevate the national hospitality and tourism sector to greater economic significance.”
“In the face of rising salaries and staff shortages, it is imperative for hotels to persist in investing in technology, making the industry more sophisticated and attractive for high-skilled workers. The ongoing technological evolution enables small hotels to compete effectively against big brands and groups, setting the hotel industry apart in terms of sophistication compared to other sectors with small businesses,” he continued.
“It’s crucial for hotels to leverage this success, adapt to technological transformations, and continue growing and thriving. The future of 2024 looks bright, fuelled by sustained demand, the ‘revenge travel’ phenomenon, and our unwavering commitment to providing unparalleled service and cutting-edge technology, equipping hotels to navigate and excel in this dynamic landscape,” Pedro concluded.
Guestcentric looks to the future with optimism and determination. The path ahead is illuminated with the promise of prosperity, and Guestcentric remains unwavering in its dedication to empower hotels, ensuring they not only survive but thrive in 2024 and beyond. The company’s commitment to exceptional service and technological innovation serves as a beacon, guiding the hospitality industry toward a bright and prosperous future.
- Guestcentric portfolio
- Banco de Portugal
- The Portugal News
- Portuguese National Institute of Statistics