Hotel Industry Experiences Double-Digit Growth in Q4
Global hotel occupancy rates for 2023 have seen a 10% increase compared to 2022, with fourth-quarter bookings rising by 11% year-on-year.
As we approach the fourth quarter of 2023, the global hotel industry is buzzing with optimism. According to recent data from travel technology leader Amadeus' business intelligence tool, Demand360®, hotel occupancy rates worldwide have averaged 10% higher than those in 2022, as of the end of August 2023.
For the last quarter of 2023, data reveals an 11% increase in bookings compared to the previous year.
Another encouraging statistic for hoteliers is the year-to-date average growth of 17% in Revenue Per Available Room (RevPAR) globally, as opposed to the rates achieved in 2022.
France takes the lead, boasting a RevPAR 123% higher than the global average. A RevPAR peak was also observed in France earlier this year, reaching $422, a staggering 220% more than in the United States during the same month.
These findings are detailed in a new report by Amadeus titled 'Hospitality Data Trends 2023: The Opportunities Ahead,' which offers current and forecasted data on room occupancy, RevPAR, and booking lead times for both hotels and short-term rentals.
In a context of global growth, Europe leads the hotel sector. For the first time in 2023, Europe's occupancy rate has narrowly surpassed that of the United States, with a strong last quarter expected. Currently, reservations for this year-end are 20% above the global occupancy average. Major cultural hotspots, including Florence, Rome, and Athens, experienced high occupancy levels during the summer, with more expected as the colder months approach.
Destinations and cities hosting large-scale events are also gaining momentum. Beyoncé's Renaissance World Tour, for instance, made headlines, leading to a surge in hotel demand in Seattle. Hotel occupancy rates for September 9-11 averaged 83%, soaring to an average of 96% for September 12-14 as fans flocked to the event. Compared to the same night in 2022, the night of the show saw a 36% increase in occupancy.
Similar occupancy peaks were observed in France during the Rugby World Cup, with host cities experiencing increased demand, as indicated by occupancy forecasts. Paris and Nice are up by 5% compared to the same period in 2022, while Marseille has seen a 7% increase, signaling rising hotel room demand during the event.
Katie Moro, Vice President of Data Partnerships, Hospitality at Amadeus, stated, "Access to comprehensive and credible data provides hoteliers with the insights they need to boost bookings and guide marketing, revenue management, and operational strategies. Market dynamics are constantly evolving, and it's crucial to closely monitor them and be able to act swiftly to seize a competitive advantage. This is what drives Amadeus' business intelligence solutions."
Hospitality Data Trends 2023 also highlights key indicators discovered by combining Amadeus' unique business intelligence with data from partner Key Data, a leading provider of short-term rental market data worldwide. The data reveals that short-term rentals are typically booked around a month (31 days) before hotels, while flight bookings are generally made slightly over three months (98 days) before travel. By combining this data with room occupancy forecasts, hoteliers can anticipate demand fluctuations and plan accordingly.