September 27, 2023

Amadeus: Global Hotel Occupancy Levels Trend 10% Ahead of 2022

According to new Demand360 business intelligence data from Amadeus, global hotel occupancy levels up to the end of August have been an average of 10 percent ahead of 2022. For the fourth quarter of the year, reservations are trending 11 percent ahead of those seen in 2022.

In a boost to hoteliers, global revenue per available room has grown by an average of 17 percent this year to date when compared to rates achieved in 2022. France is leading the way, with RevPAR sitting 123 percent ahead of the worldwide average. A RevPAR spike was also recorded in June this year in France, with rates hitting $422, some 220 percent more than in the U.S. during the same month.

U.S. hotel occupancy is trending stronger in Q4 than the world-wide average and has increased 5 percent compared to 2022. Hotel RevPAR also continues to see steady growth, with an 8 percent increase on the same window in 2022.

The findings are from a new Amadeus report, Hospitality data trends 2023: The opportunities ahead, which examines current and forward-looking on-the-books occupancy data, alongside RevPAR and booking lead times for hotels and short-term rentals.

Global Headlines

Amid global growth, Europe is leading. Occupancy in Europe has, for the first time, narrowly overtaken the U.S. over the course of 2023 and is looking forward to a strong last quarter where on-the-books reservations are currently 20 percent ahead of the worldwide occupancy average for Q4. Key cultural hotspots – including Florence, Rome and Athens – have seen strong occupancy over the summer, with more to come heading into the cooler months.

Destinations and cities with large-scale events on the horizon are also seeing traction. For example, Beyoncé is driving occupancy with her Renaissance World Tour. In Seattle, the singer played at Lumen Field on Sept. 14, driving a spike in hotel demand. Hotel occupancy for Sept. 9-11 in Seattle stood at an average of 83 percent, increasing to an average of 96 percent for Sept. 12-14 as fans arrived and stayed for the show. Occupancy was boosted 36 percent on the night of the show compared to the same night in 2022.

Similar spikes in occupancy are being seen in France during the Rugby World Cup, with demand in host cities increasing according to forward looking on-the-books occupancy data. Paris and Nice are up 5 percent compared to the same period in 2022, while Marseille is up 7 percent, indicating increased demand for hotel rooms during the event.

“Access to complete and credible data that can be trusted, gives hoteliers the insights they need to help drive bookings and guide marketing, revenue management and operations strategies," Katie Moro, vice president, data partnerships, hospitality, Amadeus, said in a statement. "For example, a shift in available short-term rental properties in a market will have an impact on potential occupancy for hoteliers. Market dynamics are constantly shifting, and it’s important to track them closely and be able to move quickly to seize competitive advantage. Delivering these insights is what drives our business intelligence solutions at Amadeus.”

The report also highlights leading indicators uncovered by combining Amadeus’ business intelligence with its partner Key Data, a provider of short-term rental market data around the world. The data shows short-term rentals are typically booked around a month (31 days) in advance of hotels, while air travel bookings are usually made slightly over three months (98 days) ahead of travel. By combining these data insights with forward-looking on-the-books occupancy, hoteliers can anticipate dips and spikes in demand and plan accordingly.

Copyright 2023 Questex LLC. All rights reserved. From By Esther Hertzfeld.

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