Report details regional differences in pricing trends
OTA Insight, the global leader in cloud-based business intelligence, today released its mid-year report on the state of global hotel pricing. The report provides a comprehensive overview of global hotel room rates in H1 2023, revealing industry trends and setting the stage for the remainder of the year.
Key findings of the report show resilient consumer spending on travel despite tightening household budgets and economic headwinds. A notable rebound in the Average Daily Rate (ADR) for the global hotel industry has been observed, with room prices exceeding pre-pandemic levels in Europe and comfortably above 2019 levels in North America.
Europe: High Demand for Short-Term Rentals and Sunny Destinations
Short-term rentals in Europe have seen high demand, recording a consistent 2%+ month-on-month growth rate in 2023. Meanwhile, a sunny forecast is in sight for Southern European destinations such as Algarve, Ibiza, Santorini, and Benidorm, as they record high room rate growth in H2 2023, indicating a strong summer season ahead.
Asia: A Beacon of Growth
The report paints an encouraging picture for Asia, which has recovered strongly with advertised prices 19% higher in H2 2023 compared to H2 2022. Popular tourist destinations in Japan, Thailand, and Indonesia are witnessing a resurgence as the region steadily gains ground.
North America: Signs of Slowing Growth
While room prices in North America remain above pre-pandemic levels, the region shows signs of slowing growth, potentially due to rapidly increasing interest rates and declining real incomes. Thirteen of the bottom 20 performers for room price growth from H1 to H2 2023 were located in the US, including previously strong vacation destinations in Florida and Mexico.
The report serves as a crucial resource for hoteliers and the wider hospitality industry, offering in-depth insights and market trends to support strategic decision-making.
Looking Ahead
As we enter the second half of 2023, global travel demand continues to grow, at varying rates across regions. While North America may be experiencing a slowing of momentum, Europe and Asia-Pacific seem set for sustained growth.
The global desire for travel and tourism remains strong, with a clear trend towards trusted, established leisure destinations. However, economic factors could pose challenges in 2024, potentially leading to a moderation in travel spend and a slower rate of price increases in the hotel industry.
To learn more about the report and gain comprehensive 2023 H1 insights, click here or contact: pr@otainsight.com