European city hotels experience further growth
The European hotel industry is proving to be robust. The majority of European city hotels will continue to increase their revenue in 2017/2018. This is the result of the sixth edition of the "European Cities Hotel Forecast" study by PwC, which involved analysing hotels in 17 European cities. An overnight stay in Geneva is the most expensive (EUR 300), followed by Zurich (EUR 244), Paris (EUR 229) and London (EUR 164).
The sixth edition of the "European Cities Hotel Forecast 2017 and 2018" report analyses the development of the hotel markets in 17 European cities. In this study, PwC forecasts a growth in revenue in 2017 and 2018 for the majority of the hotels that were analysed. However, the hotel industry in Geneva and Zurich must find new ways of compensating for the pressure of the Swiss franc, strong competition and the resulting strain on revenues.
Challenges and opportunities for the Swiss hotel industry
The strong Swiss franc and an increasing number of offers in the hotel industry represent a challenge for the city hotels in Geneva and Zurich. This is evident in the falling prices and stagnating occupancy rates. Nevertheless, many guests accept the strength of the franc and value the high service quality and product offering.
Tourism remains robust
2016 was a mixed year for the European hotel industry: Security concerns and the volatile geopolitical situation influenced certain tourist destinations. Despite this, tourist numbers remained robust. Compared with 2015, Europe welcomed 12 million more international guests (total: 620 million) and recorded more than 2.8 billion overnight stays. Mediterranean destinations in particular such as Cyprus, Greece, Croatia, Bulgaria and Portugal reported high booking figures.