The opinions expressed in this article are those of the author and do not in any way represent the editorial position of Euronews.
“Revenge travel” has helped revive the European hospitality industry, but the road ahead is not smooth. Peter Lochwiller writes that supporting small and medium-sized businesses is important to protect the cultural richness of the European hospitality industry.
advertisement
Did you take more leisure trips in 2023 than any other year in memory? I did. Industry insiders have dubbed this phenomenon “revenge travel,” and it’s become a real hot topic.
As Europe’s hospitality industry looks ahead to summer 2023, there has been a renewed energy in holiday spots and uncharted destinations across Europe.
With the busy travel season about to get underway, a survey of more than 1,000 hoteliers reveals that the hospitality industry is filled with renewed confidence and optimism.
We’re a data-driven company and we’re always seeking knowledge. To better understand the forces shaping the travel industry, we partnered with Statista to learn what keeps hoteliers up at night.
The latest edition of the European Accommodation Barometer reveals that hoteliers have high expectations for the upcoming travel season, by an astonishing 16 to 1 ratio, with 65% expressing positive expectations and just 4% expressing negative expectations.
This is in stark contrast to what we saw in 2022, when the first edition was published, where the ratio of optimism to pessimism about the future was two to one.
However, the return of bullish sentiment was not felt evenly across the continent: while Nordic and Spanish lodgings reported very positive outlooks, reflecting high occupancy rates and rising room rates, French and German hoteliers responded more mutedly.
This should not be confused with a negative attitude, but rather a cooling of enthusiasm compared to 2023.
This variation is evident across regions, property types and sizes, illustrating the dynamic and often fragmented nature of a travel industry where no single destination, travel operator or distribution channel dominates.
Once again, the upbeat atmosphere of hotel chains outshone their independently owned counterparts. It’s not just about filling rooms, it’s about generating revenue. Hotel chains use their brand’s global reach, access to capital, proprietary technology and unique loyalty programs to attract guests.
It’s about the small and independent among us
Smaller, independently run hotels lack access to the closed systems used by the larger chains, putting them at a disadvantage as more and more guests come from overseas.
However, accommodations that choose to be independent can bridge these gaps by partnering with technology companies. In fact, a research paper by a group of leading academics in the industry found that hotels listed on digital platforms enjoy higher overall profitability, and the smaller the property, the more pronounced the positive impact.
Verified consumer reviews can help independent accommodations build a global presence and make up for lack of brand recognition, as travelers find reviews more important than traditional star ratings.
To stay competitive, independent hoteliers are outsourcing some of their management headaches to connectivity providers, implementing channel management software and investing in social media marketing.
The Accommodation Barometer reveals that, despite being more agile and adaptable, smaller venues are also more sensitive to changes in consumer behaviour and have high hopes for government support.
Accommodation sector across the EU voiced their desire for targeted interventions, such as reducing VAT on tourism-related services, investing in local infrastructure and supporting sustainable business practices.
Small hotels have strong ties to their communities, so it’s no surprise that they are clamoring for improved public transport and investment in regional tourism.
The time has come for closer cooperation
Rising operating costs and the ongoing impacts of climate change are putting many hospitality small businesses under pressure, especially in areas prone to extreme weather.
advertisement
Proactive government policies that support sustainability efforts and provide financial relief could make a big difference to the survival and growth of these businesses.
So far, our research has found that larger chain-affiliated hotels have benefited more from government policies than smaller, independently owned hotels.
As travel industry stakeholders, we can and should work more closely together to foster a competitive, diverse and resilient European accommodation sector. By supporting accommodation providers large and small, we can preserve the unique cultural fabric of European tourism and boost economic growth.
In conclusion, “revenge travel” has helped revive the European hospitality industry, but the road ahead is not smooth. Supporting small accommodation is the way to preserve the cultural richness of the European hospitality industry.
Peter Lochbihler is Head of Global Public Affairs at Booking.com.
advertisement
At Euronews we believe that every opinion matters: to send us your comments and suggestions and join the conversation, please contact us at view@euronews.com
