In 2023, the European hospitality industry experienced a surge in travel known as “revenge travel,” with increased leisure trips compared to previous years. The industry showed newfound confidence and optimism, with hoteliers expressing high hopes for the upcoming travel season. The European Accommodation Barometer, in partnership with Statista, revealed that 65% of hoteliers had positive expectations, compared to only 4% with negative views. However, this optimism was not evenly distributed across Europe, with Nordic and Spanish accommodations showing stronger positive outlooks than those in France and Germany. The resurgence of confidence highlighted the dynamic and fragmented nature of the travel industry.
Chain hotels demonstrated a more positive sentiment compared to independently-run properties, leveraging their brand recognition, access to technology, and loyalty programs to attract guests. Smaller and independent hotels faced challenges due to their lack of access to similar resources, particularly in attracting international visitors. However, independent accommodations could partner with technology firms to increase visibility, profitability, and competitiveness. Smaller establishments were more sensitive to changing consumer behavior and expressed a desire for government support through interventions like lowering VAT, investing in local infrastructure, and promoting sustainable business practices.
Smaller hotels, despite their agility and adaptability, needed government support to survive operational costs and climate change impacts. Proactive policies that support sustainability initiatives and provide financial relief were crucial for the growth and resilience of these businesses. Larger, chain-affiliated hotels found government policies more beneficial compared to independent accommodations. It was essential for stakeholders in the travel industry to work together to nurture a competitive and diverse European accommodation sector. By supporting both large and small accommodations, the unique cultural fabric of European tourism could be preserved, promoting economic growth and sustainability.
The uneven path ahead for the European accommodation industry emphasized the importance of supporting smaller establishments to maintain the cultural richness of Europe’s hospitality landscape. Despite the resurgence of confidence in the travel sector, there were challenges faced by independent accommodations, particularly in competing with larger chains. Government interventions, targeted at supporting sustainability and providing financial relief, were essential for the survival and growth of smaller accommodations. Working together as stakeholders in the industry, it was crucial to nurture a competitive, diverse, and resilient European accommodation sector to promote economic growth and preserve the unique cultural heritage of European tourism. Peter Lochbihler, the Global Head of Public Affairs at Booking.com, highlighted the significance of supporting smaller accommodations as a way to preserve Europe’s hospitality landscape.
