Travel Industry, News and Analytics

European Hotels Post Poor Results of November 2020

The impact of the second lockdown was severe for hotels across Europe. They had even weaker performance than in October, losing all hopes for at least some revenues during the tough pandemic year. In November 2020, the occupancy was only 21.3%, which is 70.4% below the result of November 2019. The average daily rate (ADR) fell to 72.42 euro (a decrease of 32.3% year-on-year). Finally, the revenue per available room (RevPAR) had even a higher drop of 81.2% year-on-year to 14.42 euro.

The continued COVID-19 lockdowns ruined the performance of virtually all European markets. The key performance metrics are way below the 2019 levels. For example, hotels in Brussels and Belgium, in general, saw a dreadful decline in occupancy. It was only 13.1% in November 2020, falling by 82.9% compared to October 2019. ADR lost 32.8% to 77.80 euro, and RevPAR lost 88.5%, reaching only 10.21 euro. Needless to say, the capital of Belgium is not used to such poor performance. The occupancy and RevPAR in November were poor even for the coronavirus year – these are the worst results since May. ADR, in its turn, was the lowest for the entire year.

Similar results are true for the majority of European countries. A closer look at Dublin hotels reveals poor performance in all three metrics. Hotels in Ireland had their occupancy as low as 16.2% in November 2020, a year-on-year decline of 77.4%. This is the lowest occupancy in the country since June 2020. ADR lost 37.1% to 73.60 euro, and the drop in RevPAR was even more significant – 85.8% to 11.93 euro. The ADR result was the worst for 2020.

How can European hotels save their business in the wake of the pandemic? Staycations could be the answer. There has been a surge in short-distance vacations in such regions as the Middle East, Asia Pacific, and Africa. Surprisingly, the trend is not registered in South America and Europe. Perhaps, the lack of reviews describing interesting nearby destinations is one of the reasons for this.

While exotic foreign destinations are temporarily not available, tourists can take a chance to discover beautiful places near their homes. Staycation packages can be a valuable option for people who are tired of their homes and are craving a change of scenery. A romantic weekend at a hotel or a long weekend in a neighboring town is great for forgetting about the routine, enjoying good food, and simply relaxing.

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