Source: PricewaterhouseCoopers
In 2013, 1.1 billion international business and leisure travellers were recorded and changes in global demographics and rapid technological change mean these consumers have different expectations, greater freedom of choice and a high degree of familiarity with digital technology. By 2017, mobile internet penetration in the UK alone will reach 88% (source: Global Entertainment & Media Outlook 2103 - 2017) At the same time, mobile and tablet hotel bookings are overtaking ‘traditional’ web-based booking. Travel consumers want mobility, flexibility and easy real-time access to information and to shop and pay safely and easily on the go. They expect seamless connectivity allowing them to access the content they want when they want it across all platforms, and also increasingly expecting seamless transitions between different platforms. Digital and mobile platforms are changing everything… — Photo by PWC 2014

This third edition of PwC's European cities hotel forecast is published against a backdrop of a region that has taken an economic pounding but is seeing clear evidence of economic recovery and returning confidence. The world is changing at a pace and in this snapshot (taken in February 2014) we look forward to resurgence in travel and hotel prospects in 2014 and 2015.

In terms of where hotels are compared to before the recession, in nominal terms the

market is almost back at its pre-recession peak (reached during 2007) but it remains significantly behind in real terms. For example, European ADR is now only 5.7% below its pre-recession levels in nominal terms but 17.9% lower in real terms.

There are 18 cities in this econometric forecast – all are important gateway cities and/or

business and tourism centres and some are en route to becoming mega cities. The 18 reflect the challenges facing other cities in Europe where position on the economic and hotel cycle is crucial, and some cities are clearly better placed to grow than others. We anticipate growth in 17 out of the 18 cities in both 2014 and 2015.

In this edition we give look back at 2013: give our forecast for 2014 and 2015, and

provide a city by city forecast for 18 gateway cities in Europe. We also give our view on the challenges facing hotels in these locations, along our economic, travel and supply outlook, and we explore the megatrends that will be transforming hotel businesses.

About PwC US

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Robert Milburn
UK Hospitality & Leisure Leader
020 7212 4784
PricewaterhouseCoopers

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