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Hostels in Europe Posted Encouraging Results for 2019

News While many hotel segments in Europe had a successful year in 2019, hostels across the region had a fairly profitable year. Such steady and established markets as Berlin, Amsterdam, London, and Edinburgh were mostly growing in 2019. Here is more detailed information about them.

Hostels in London had the highest occupancy among the four cities mentioned above. On average, they filled eight beds out of ten, reaching the occupancy of 83.8% in 2019. This is 2.2% higher than in 2018. Other key metrics, such as average daily rate (ADR), revenue per available bed (RevPAB), and total revenue per available bed (TrevPAB) were also growing. Indeed, London hostels reached impressive occupancy, but this is not new for the capital of the UK where hotels in all segments traditionally have many customers. For instance, the occupancy of budget and midscale hotels in London was 84.9% in 2019.

Berlin hostels had the highest year-on-year increases in key metrics. ADR added 4.5%, RevPAB added 3.9%, and TrevPAB increased by 4.1%. Occupancy was 0.6% lower than in 2018. In absolute figures, however, the growth is lower than in other big markets. A small gap of only EUR3.61 between RevPAB and TrevPAB shows that hostels in Berlin do not offer many extra services and amenities.

Hostels in Amsterdam had the highest ADR among the four markets – EUR35.31 per bed, as well as the highest RevPAB of EUR28.14. Such high prices in Amsterdam hostels are easy to explain. The city’s administration decided to fight over-tourism by banning new hotel and hostel development in the city center. The city hopes that more tourists will prefer to stay in remote districts and encourages hotel construction in them. Naturally, this helps the existing hotels and hostels to keep their prices high.

Finally, Edinburgh hostels suffered from decreases in all key metrics. RevPAB was down by 3.3%, but increased auxiliary revenues helped to soften the decrease, so TrevPAB was down by only 0.4%. ADR lost almost 2%. In 2020, London and Amsterdam hostels might experience troubles. The first market might suffer from the Brexit effect, and the new tourist tax in Amsterdam may be too much a burden for budget travelers. Berlin should grow moderately as it is still relatively low-priced while active nightlife makes it an attractive destination, particularly for younger guests.


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