Healthy Marketplace For European Hotels With Marked Online Growth For The Sector | EyeforTravel Research
The European hotel sector is currently looking very healthy indeed, boosted by increased demand and supply. Occupancy rates have remained fairly stable but ADR and RevPAR have increased indicating better value sales. According to a new report published by EyeforTravel Research, Europeans spent an estimated EUR 81 billion on accommodation in 2007, including travel within and outside of Europe.
The European hotel sector is currently looking very healthy indeed, boosted by increased demand and supply. Occupancy rates have remained fairly stable but ADR and RevPAR have increased indicating better value sales. According to a new report published by EyeforTravel Research, Europeans spent an estimated EUR 81 billion on accommodation in 2007, including travel within and outside of Europe. The majority is spent on hotel accommodation and other accommodation such as camping, hostels, etc make up 18% of the total. Southern Europeans spend the most on accommodation and next up are the Germans and these markets account for half of all hotel nights in Europe. However, it is the UK that spends over the average on accommodation pppn.
All online travel market sectors in Europe grew at least a fifth in value in 2007, though the hotel sector saw the fastest growth at 36%, as “suppliers are becoming increasingly internet savvy and marketing their inventory through a variety of distribution channels” according to Amy Scarth, head of research at EyeforTravel. It is also pointed out that intermediaries and GDS’s are also tapping into the vast array of independent hotels Europe beholds, by continuously increasing their inventory.
According to EyeforTravel Research data there has been a six fold increase in online hotel sales in the last 5 years and online revenues reached EUR 9.5 billion in 2007, a 43% CAGR from 2002. The UK is currently the market leader for online hotel sales. Online channels now account for 12% of overall European expenditure on hotels and other accommodation and is expected to rise to around 21% by 2011. Non hotel accommodation remains predominantly booked offline, with just 5% online penetration. However EyeforTravel reports that hostel intermediaries, led by the two leading consolidators in the market, have made spectacular progress with an 87% CAGR over the last 5 years. The European accommodation market is somewhat different from the US in terms of direct vs. indirect online distribution and currently 70% of sales are indirect. This reflects the fragmented nature of the European hotel market, dominated by independent rather than chained hotels.
Further information about the European online travel market can be found in EyeforTravel’s European Online Travel Report 2008