room to grow - taken from pwc report
DESCRIPTION
European cities hotel forecast for 2014 and 2015.TRANSCRIPT
There is a growing optimism in the European economy which is now recovering from the double-dip recession triggered by the euro crisis. Significant improvements in confidence and activity through the second half of 2013 mean that we now expect growth across Europe in 2014 and 2015.
The challenge for hotels will be to capitalise on this improving economic climate whilst responding to the megatrends impacting their business.
Dr Andrew Sentence CBE, Senior Economic Advisor to PwC
Overall, average Europe-wide RevPAR in 2013 was €67.99, 6.5% lower than the 2007 high of €72.70, but 18.5% lower in real terms. This illustrates the extent to which the sector has underperformed the wider economy, as real GDP in 2013 across the EU was only marginally below the 2007 peak.
What’s driving growth?
It’s a mix of ADR and occupancy, although in many citied ADR is the stronger metric. This is true in cities like London where despite a high supply pipeline, occupancy is already very high and the city is virtually full up mid-week.
A new generation of customer
Travel consumers want mobility, flexibility and easy real-time access to information and to be able to pay safely on the go. They expect seamless connectivity allowing them to access the content they want across all platforms, when they want.
Source:Room to Grow: Pwc Report 2014