Hoteliers Forecast Revenue Increase in 2021 vs 2020Reading Time: 2 minutes
Despite a disruptive start to this year’s summer season in Europe, our latest Hotel Business Barometer results reveal a positive shift in sentiment across the hotel industry. Below are some of the key hotel data updates from Hoteliers we surveyed and our market trends analysis, published in our September edition of The Hotelier PULSE Report:
Occupancy Performance & Revenue Forecast
The majority of Hoteliers surveyed met or exceeded the industry’s average occupancy forecast of 58% for August 2021. Over 64% of Hoteliers also expect to significantly increase revenue (by as much as 50%) in 2021 vs 2020.
Most of the Hoteliers surveyed now expect to financially recover to 2019 levels in 2021 or 2022. The majority of City Center Hotels and Resorts now expect to increase revenue in 2021 vs 2020, yet the majority of Bed & Breakfasts largely now expect their revenue to decline.
International Bookings Growth & Revenge Travel Expectations
As vaccinations accelerate and governments start to reopen their economies, our survey results also indicate Hoteliers seem to be cautiously optimistic that revenge travel may still happen in the remaining months of 2021.
Our market trends analysis also reveals consistent month-to-month growth in international hotel bookings, overtaking the domestic market which has dominated since the start of the Covid-19 crisis in 2020. Notably, however, the majority of Hoteliers surveyed still expect domestic and leisure travel to be the main contributors to recovery.
Direct Channel Growth
Showing the strongest performance for three consistent months against pre-pandemic levels, Hotel Direct bookings in August 2021 reached 153,57% of those over the same period in 2019. Overall hotel stays are also steadily growing to pre-pandemic levels. Notably, although overall stays have yet to reach this benchmark, the direct channel is the only one to have exceeded 2019 levels in August 2021.
In line with direct channel resilience and recovery during the recovery period, the majority of Hoteliers surveyed want to focus efforts on establishing their direct channels as the top source of reservations over the next 12 months and beyond.
Contribute to our September 2021 Hotel Business Barometer
As Hoteliers embrace the concept of revenge travel on the horizon, focusing on staffing challenges and rethinking distribution partnerships, we understand that some of the pandemic-centric issues we’ve previously addressed in this report will become less relevant to your business decision-making. We also understand you may also not have as much time to participate in a lengthy, complex survey each month going forward.
Thus, we have launched a new, simplified monthly Hotel Business Barometer to ensure you stay informed of crucial market trends and industry sentiments on the go! As part of this relaunch, I am personally inviting Hoteliers to, on an ongoing basis, ask me any questions they may have in relation to the current market trends best practices to implement for business growth.
Please send me your questions in our latest survey.