BTN Europe presents an overview of business travel and MICE predictions for this year
Virtual Event - 1 October 2020
ExCeL London - 22-23 June 2021
Region sees highest global drop in ADR - STR
The fall in average room rates is at the root of the problems of European hotels, James Chappell, managing director of research consultants STR, said.
It latest survey has found that average daily rates (ADR) in Europe fell 12.5% in May year-on-year, the steepest decline when compared to Asia-Pacific, the Americas and Middle East/Africa.
Asia-Pacific's 6.8% fall in ADR was almost half that of Europe, despite suffering the second highest drop last month.
The Middle East/Africa was the only global region to experience year-on-year growth in ADR of 3.2% last month.
Other figures from STR showed that only four out of 40 European cities surveyed saw growth in ADR - Frankfurt, Tel Aviv, Helsinki and Malmo in Sweden.
"The trade fairs helped Frankfurt to achieve the highest ADR increase of 22% for the 40 markets tracked," said Mr Chappell.
On average, European occupancy in May fell 9.7% year-on-year, with Russia the hardest hit with a 20.7% decline. Germany saw only a 3.1% drop, helped in part by the Frankfurt events.
Revenue per available room (revPAR) in Europe fell by 21%. Out of five "key" European countries, only Russia and Spain saw an above average decline in revPAR of 39.9% and 25.2% respectively.
Last month STR reported a steep drop in European occupancy, room rates and revenues in April, with some figures almost halved.
In April occupancy in German industrial city Dusseldorf fell 31.8% to 47.6% while ADR was down 46.5% to €79.85.