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mrp hotels: Outlook for a record summer makes the tourism industry euphoric – with exceptions and limitations.

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In a recent analysis, the hotel consulting company mrp hotels sees a strong recovery of tourism in the summer months and beyond.

Vienna (OTS) – What does the summer bring to the vacation and city hotel industry? This also macroeconomically important question is pursued by mrp hotels as a hotel consulting company operating throughout Europe.

Martin Schaffer, Managing Partner mrp hotels, sees a positive trend on the market: “We are already seeing high occupancy rates and high demand in summer destinations and vacation regions. Nevertheless, many things remain ambivalent. Booking figures in many places will in our view not only be able to exceed the already very good figures from 2021, but from today’s perspective even exceed those of 2019 – provided that the longing for the sea, Corona, Ukraine and inflation do not throw a spanner in the works. In places, the pace of new bookings is slowing.”

For the hotel expert, the reasons for rising booking figures are, among other things, the pent-up vacation desire, but also in the business segment: “After around two years, which were marked by the pandemic and the accompanying restrictions, we notice that the desire to travel worldwide remains high – or even stronger than in 2019. At the same time, major congresses are taking place again, which additionally have a positive effect on the booking situation.”

What is special here is that Austrians have rediscovered their own country as a vacation destination. As in the past two years, the classic “summer retreat” has made a comeback – and the more rural regions and the vacation hotel industry are benefiting from this in particular. “Domestic tourism has been on a strong upward trend again since the May holidays at the latest, and in many places has almost returned to pre-crisis levels,” Martin Schaffer continues.

And this is essential to compensate for the continued absence of source markets: while, for example, the most important European source markets for Austria such as the Netherlands and Germany have already exceeded the level of 2019, guests from Asia (e.g. China: -93% in March 2022 compared to 2019) are almost completely absent – there is no recovery in sight here in the medium term either.

Martin Schaffer sees a problem at the airports – especially the large hubs that are important for international traffic: the acute shortage of staff at the airports will make travel more difficult and lead to problems with summer travel – most recently this was already noticeable at Whitsun in Amsterdam, London and Berlin. However, according to Martin Schaffer, Vienna Airport will also be affected during the summer months. However, Germany and Austria have the advantage of being predominantly earthbound travel destinations.

Raw material and energy costs are driving prices – the loss of profitability of the hotel industry

As a result of the conflict in Ukraine, the hotel industry, like any other industry, is also affected by higher raw material and energy prices, as well as by the inflationary situation, which additionally threatens profitability “In order to be reasonably profitable, the hotel industry will be forced to raise prices, and significantly above pre-crisis levels – this will make vacations more expensive for consumers, with inflationary pressures also playing a not insignificant role in addition, possibly putting pressure on consumer spending,” explains Martin Schaffer.

Situation in the cities: Increase in demand, but slower recovery

In addition to the vacation destinations, the occupancy figures of the Vienna hotel market have developed extremely positively in recent months – and on average better than in the other provincial capitals. This is related to the return of cultural offerings and congresses – the current high booking situation is a first important step for the overall recovery. However, an ambivalence can be observed specifically in the Viennese market, as Vienna has the most to catch up on compared to the other cities.

Numerous challenges for the industry

Inflation is not the only major factor facing the hotel industry. “Quite essential is the acute shortage of employees in the hotel industry. Ultimately, the employees of each business are the guarantors of quality. Employee costs will increase dramatically – firstly, there will be a significant adjustment of KV wages in the coming year, and secondly, the lack of employees will continue to drive up salaries,” says Martin Schaffer.

But also to the changed, short-term booking behavior the enterprises must adjust and with a high measure of flexibility to the new requirements of their guests react – including short term cancellation possibilities.

Martin Schaffer concludes: “Even if the pandemic seems to be over, the hotel industry continues to be confronted with crucial challenges that will determine its actions in the medium and long term. Nevertheless: when we talk to hoteliers, we notice a positive basic – or if you will – also upbeat mood. Due to the high demand, we also see an increase in rates in the vacation destinations, but also in the cities – the price sensitivity seems to have been leveraged out in the last few weeks. I think a lot has already been gained from this, even if there is still a long way to go to full recovery.”

About mrp hotels

mrp hotels is a leading consulting company in the hotel industry. mrp supports its clients in all project phases – from site search and hotel development to transaction management, performance analysis and technical consulting.

With three locations in Europe (Vienna, Berlin and Munich), the team has extensive expertise in the relevant hotel markets. The team at mrp hotels consists exclusively of experts with many years of know-how in the hotel and tourism sector. Clients include renowned companies such as Signa, Deka Immobilien, Raiffeisen Capital Management, LOISIUM Hotels, the S+B Group and B&B Hotels.

For more information on the service portfolio of mrp hotels, please visit https://www.mrp-hotels.com/de/, regular insights, conversations with industry experts and much more can also be found on our video channel
https://www.youtube.com/channel/UCXGpunJ3S-xguX55LkdBf1g.

Also follow us on:

LinkedIn: https://www.linkedin.com/company/mrp-hotels/
Instagram: https://www.instagram.com/mrp.hotels/

mrp hotels c/o
epmedia Werbeagentur GmbH
Johannes Eisert MRICS
+43 699 151 26 609
[email protected]

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The post mrp hotels: outlook for record summer makes tourism industry euphoric – with exceptions and limitations appeared first on TOP News Austria – News from Austria and around the World.

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