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Hotels in Vienna Reach Record Number of Overnight Stays in 2011
The annual report by the Kohl & Partner tourism consultancy shows that in 2011 hotels in Vienna featured the record number of overnight stays equal 11.4 million. This has become possible thanks to increase of occupancy of 5% and attention to the country from the side of either Austrian, or international hoteliers.
Even though the results of the previous year are very good, both operators and investors foresee 2012 to be a tough year. The main reason for this fact is a strong growth in supply – over 4,300 beds were added in 2011. Average room rates are also quite poor as rates have not grown after significant inflation and global crisis. The increase of 5.5% could only bring the rates back to the average level of 2009. In 2011 the average price of a hotel room in Vienna estimated 95 Euro including local taxes, VAT, and breakfast. Even though the demand also grows, the growth of supply is too fast, so no serious growth of occupancy is expected. Moreover, within next several years a large number of hotels will be added to the hotels market of the region. These will be hotels belonging to different segments, from midscale ones near the mail railway station of the city to luxurious hotels in the center of Vienna.
The problem of hotels in Vienna is also in the large number of the same accommodations that offer same rates and same services. Neither operators nor investors benefit from this situation. On the other hand, the number of budget accommodations in the city must be doubled as comparing to major German cities there are not so many cheap hotels in Vienna.
Finally, Vienna hoteliers must upgrade their system of booking. Today the number of reservations made online keeps growing, but not all hotels in the Austrian capital are ready for this.
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