The data reflects a spike in RevPAR over the European summer season, peaking at 98 euros in August.
BREDA, THE NETHERLANDS – RoomRaccoon, leading hotel management system for independent hotels, has released its annual report, RoomRaccoon Report 2023: Unpacking Europe’s Independent Hotel Industry Trends. The report analysed hotel performance data from thousands of independent hotels in key source markets in Europe to see how the industry is changing.
The report reveals that travel demand remains high in 2023, with the average occupancy rate outpacing 2022 levels by 10%. Revenue per available room (RevPAR) in 2023 increased by 20% compared to 2022, growing from 55 euros to 66 euros. The data reflects a spike in RevPAR over the European summer season, peaking at 98 euros in August.
Other key findings include:
- Peak season is extended: The traditional peak season has seen an extension, with high occupancy rates persisting through September (65%) and October (58%) in 2023.
- OTA and Direct Bookings have equalised: Online Travel Agencies (OTAs) and direct bookings now share an almost equal share of hotel reservations, with OTAs accounting for 49% of hotel bookings. In comparison, direct bookings make up 51%.
- Travellers are holidaying more frequently: Despite a decrease in the average length of stay in 2023, it’s a sign of a change in travel patterns rather than a decline in travel. The data indicates that travellers are taking more frequent, shorter trips, which may be attributed to the desire for quick getaways. This is evident in the number of bookings made by domestic travellers in 2023, averaging 43%.
- Hotels are finding new ways to generate revenue: The report highlights that independent hotels have been innovative in diversifying their revenue streams. Beyond traditional room bookings, independent hotels increasingly offer unique experiences, services, and amenities to attract guests. Additionally, many hotels are expanding their event and conference facilities, including upselling parking spaces, to enhance their revenue-generating capabilities.
Commenting on the data, RoomRaccoon’s CEO and Co-Founder, Tymen van Dyl, says: “Independent hotels should be encouraged by the sustained strength of travel intent across European destinations. However, with unpredictable seasonality, relying on historical data could result in hotels underpricing their rooms and missing out on additional revenue. By implementing AI software that can understand supply and demand, hoteliers can have a dynamic pricing strategy that considers fluctuating demand and ensures that they are generating the best possible rates across all sales channels.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
