Knowing you might not have time to watch our full webinars, we are pleased to continue our series of COVID-19 webinar summaries. In this latest edition, we talk performance in the Asia Pacific region. Demand gradually improving in Mainland China
In April 2020, as part of the significant economic damage caused by COVID-19, hotel average daily rate (ADR) in China, Europe, and the United States dropped 40% below pre-pandemic levels. Since that point, rates in all three regions have improved, but hotels in China are much closer to reaching pre-pandemic ADR.
Knowing you might not have time to watch our full webinars, we are pleased to continue our series of COVID-19 webinar summaries. In this latest edition, we talk performance in alternative accommodations.
In a recent blog post, we covered how the summer months provided U.S. hotels with an increase in leisure travelers, a welcome change that lifted the industry from the pandemic performance lows of the spring. Naturally, we expected that leisure travel to dry up and overall hotel performance to retreat due to the return to school and a persistent lack of corporate and business travel.
Knowing you might not have time to watch our full webinars, we are pleased to continue our series of COVID-19 webinar summaries. In this latest edition, we talk performance in the Latin America region. Some markets heading in the right direction
Turkey’s hotel average daily rate (ADR) has grown exponentially in recent months despite the global pandemic depressing rates most everywhere else in the world. Globally the impacts of COVID-19 have weighed heavily on hotel performance, but in Turkey, several unique macroeconomic factors have aligned to impact rate over and beyond the effects of the pandemic.
Most of the U.S. continues to see a sizable gap in weekly demand when measuring this year vs. last year (TY/LY). After STR’s October update, 44 states experienced less room demand through the week ending 7 November (week no. 45 of the year).
With new COVID cases on the rise and risk mitigation the name of the game, most companies will continue working from home and business travel will remain negligible, stymying further RevPAR improvement.
In late August and early September 2020, STR conducted quantitative research using STR’s Traveler Panel. We set out to examine attitudes to travel in this ‘new COVID world’ and to evaluate early experiences among travelers at a time when many economies were reopening and the industry was seeking to capitalize on pent up demand.
In late August and early September 2020, STR conducted quantitative research using STR’s Traveler Panel. We set out to examine attitudes to travel in this ‘new COVID world’ and to evaluate early experiences among travelers at a time when many economies were reopening and the industry was seeking to capitalize on pent up demand.
The twists and turns of the COVID-19 pandemic have contributed to seismic changes in tourism, which has included the cessation of international travel for some countries. As a whole, we have witnessed long-lasting shifts in consumer behavior and attitudes, producing an increase in active travel, soaring levels of e-commerce and, yes, even ballooning rates of pet ownership.
Major economies in Europe, including the U.K. and those in the Eurozone, recently confirmed what we already suspected. Economies across the continent have entered an economic recession because of the impact of COVID-19—an impact that has been devastating for the hospitality industry.
Mainland China hotel performance is steaming, while occupancy in the Asia Pacific region (excluding Mainland China) presents low occupancy levels overall. U.S. occupancy has remained mostly flat in recent weeks even with a lift from post-natural disaster demand. Recovery in Europe, Australia and New Zealand is also flattening.
Brazil, like many nations, has lifted COVID-19-related entry restrictions for travelers and provided an additional flow of demand for reopening hotels. However, reopening measures are determined on a state level. How has this affected Brazil’s recovery?
How does Europe compare to other regions in the recovery cycle? China hit a 69.4% occupancy level on 18 August, the highest level during the time of the pandemic. Since that date, however, China has started to fall back a bit. During the first weekend of September (4-6 September), the market posted 57.6%, 57.5% and 57.9% occupancy levels, respectively.
While Germany boasts the most open hotels in Europe, U.K. hotels are opening the fastest having started July with 70% of hotels closed and ending the month at just 20% hotels closed. European hotel occupancy is significantly healthier moving into August, with coastal markets in many countries experiencing the strongest recovery.
July and August are two of Europe’s most important months for hotels with travellers spread across the continent on summer holidays. However, it is no secret that summer looks much different this time around for Europe due to the global impact of the COVID-19 pandemic. Occupancy (for reporting hotels) for the week ending with 18 July shows that most European countries are somewhere between 20-40% in occupancy.
While ADR has declined since the end of 2019, the decline is modest compared to Ireland’s significant demand loss over the same period. Peaks in rate over the past few weeks indicate healthy weekend leisure travel.
For the week ending 28 June, occupancy of open hotels in European countries ranged from 10%-40%. Among those countries, Israel posted the highest occupancy level (41%), followed closely by France (34%) and Spain (32%). Regional markets in Europe are leading the recovery while main cities have lagged. For example, Finland Provincial posted the country’s highest occupancy level (66%), while Helsinki occupancy was 23% for the week ending 28 June.
The COVID-19 pandemic has caused unprecedented challenges for global hospitality, with travel restrictions and lockdown measures forcing hotel closures and performance declines that exceed the levels witnessed during the global financial crisis and other challenging times for the industry. An area of the industry where the impact continues to evolve is business on the books, or reservations booked for future dates.