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Hotels in Germany Suffer From Weak Leisure Tourism Demand

It seems German hotels will suffer from weak demand in leisure travelling. At least, April showed double-digit decreases in RevPAR levels in hotels in Frankfurt and Düsseldorf.

According to the information provided by TRI Hospitality Consulting, hotels in Düsseldorf are in depressive state as the gross operating profit per available room (GOPPAR) decreased over a half. The decline in RevPAR here estimated 30.1% in April (23.4% in Frankfurt). While the digits kept growing in 2010 and the beginning of 2011, April showed major decrease making it hard for hotels in Germany to reach pre-recession levels. According to TRI Hospitality Consulting, this situation is caused by the weak demand from leisure travellers. GOPPAR level features declines of 45.5% in Frankfurt hotels and of 69.5% in Düsseldorf, so we can say that Easter holiday period was more than unsuccessful for both German cities.

Another source of weak performance is in the lack of popular international events that always attract many visitors. Wire and Tube festival in Düsseldorf was missed, while Light and Building exhibition in Frankfurt was simply not conducted.

Other cities of Germany, which are more popular among tourists, such as Berlin and Hamburg, continued showing positive results in April.

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