Global Hotel Prices on the Rise with Europe Leading the Surge

Hotel prices around the world have climbed this summer as Europe continues to thrive without coronavirus-related restrictions.

According to Business Travel News Europe, hotel analyst STR provided data that showed average daily rates (ADR) from hotels worldwide increased 6.3 percent in July compared to the same month in 2022, with Europe recording the biggest jump at 13.4 percent.

The STR data also showed that ADR in Europe was up 47 percent in July compared to July 2019, including increases of 51 percent in Italy, 31 percent in the United Kingdom, 30 percent in Spain and 18 percent in Germany.

European ADR year-over-year increases were less, though, as the UK and Spain reported a six percent jump in July, while Germany improved by three percent. Officials also revealed that hotel occupancy around the world plateaued at 2-3 percent below 2019 levels.

As for the Asia-Pacific region, STR data reported it saw the most substantial year-on-year growth in revenue per available room (RevPAR), which climbed 36 percent in July. The Americas reported the slowest RevPAR growth last month, with a one percent increase year-over-year.

Travel management company CWT predicted “more moderate” price increases next year.

Last month, Key Data revealed that the short-term rental market in the United States fell sharply through the first six months of 2023. RevPAR increased across Europe and globally through June, jumping 5.7 percent to $49 due to an increase in occupancy offsetting a slight increase in Average Daily Rates (ADRs).