Key European Markets: RevPAR Forecasts
HENDERSONVILLE, Tennessee -- Forecasting hotel performance in uncertain economic times is never easy. No person knows exactly what occupancy and room rates will be in 12 months, much less next month, but historical trends show us what has happened in the past under similar circumstances and we can make assumptions based on that data. With the bleak outlook many are projecting for the global economy over the next year, it seems this recession may prove to be deeper and longer than previous downturns. Over the past four years forecasting RevPAR performance has been easy, at least directionally. For most markets, RevPAR grew at sometimes staggering rates, month after month. That is no longer the case as the global recession has progressed and consumer confidence indices hit their lowest marks ever.