This is the European accommodation sector in 44 charts
Travel in Europe is something that feels familiar to many of us, but how much do we really know? What is its relation to the wider European economy? What makes it distinct from other world regions? What’s driving change in this dynamic sector?
Booking.com and Statista have partnered up to answer all these questions in a new publication, Europe’s Travel and Accommodation Sector in 44 Charts. Our goal is to help make sense of the European travel and tourism ecosystem, identify the driving forces behind it and celebrate the abundance of choice that it offers.
Here’s a chapter-by-chapter overview, with a few choice statistics that demonstrate the successes, challenges and wonderful diversity of the European travel market.
Megatrends
The first chapter explores the macro forces behind Europe’s travel and tourism sector as well as the impacts it has on the region. Tourism is a key pillar of Europe’s economy and one of its fastest growing sectors. The blow dealt by the COVID-19 pandemic, whilst devastating, was far from fatal. The travel industry is expected to bounce back with gusto as an expanding global middle class, ubiquitous connectivity and Europe’s enduring appeal restore the sector to its former heights and beyond.
Accommodation sector
Europe’s accommodation sector is uniquely diverse — home to everything from slick urban boutique hotels to rustic countryside cottages. The second chapter highlights this distinctive makeup while identifying the challenges that face providers in the region. Long-term structural drivers of change — such as the internationalization of travel, an expanding middle class in Asia and a boom in construction — are reshaping the travel and tourism landscape.
This new environment tends to favor large chains with the resources and cachet to ensure they remain visible at the expense of Europe’s diverse medley of independent accommodation providers. As we’ll see in the next chapter, however, independent providers do have options when it comes to global competitiveness.
Online travel platforms
The third chapter delves into the important contribution that online platforms make to the European travel ecosystem. Platforms help to increase transparency, convenience and choice for travelers, as well as allowing accommodation providers to market their offering to a global audience, providing them with a leg up in the competition with the big brands.
Digital platforms and independent accommodation providers benefit from enduring partnerships, and it helps the latter generate incremental revenue, drive growth and create jobs and opportunities in local economies, and — in the absence of any fees until a room is sold — all without risk. They’re just one of a number of different tools that help support what makes European travel so exciting — the passion and dedication of the region’s hoteliers.
Sector dynamics
A deep dive into the dynamics of European accommodation reveals a sector characterized by a wealth of choice and entrepreneurial freedom, as well as a unique set of challenges. Post-pandemic energy costs, green transitions and mastering digital technologies are all obstacles to be surmounted for independent providers as the dominance of chains looms large in their minds.
But travel entrepreneurs are used to taking challenges in their stride and the charm of the European accommodation landscape is a force to be reckoned with. The direct relationship between traveler and hotel continues to dominate the marketing mix, while intermediaries, such as online platforms, augment it. Direct distribution and intermediaries are expected to grow together, continuing their symbiotic relationship, bringing intrepid travelers to European shores, driving employment and GDP growth.
Consumer preferences
With the lure of what’s on offer, no one is calling into doubt the enduring popularity of Europe as a tourist destination. Traveler preferences around how exactly they travel, especially among younger travelers, do seem to be shifting however. Ubiquitous internet connectivity means that the modern traveler now demands an immersive online experience, services available at any time, mobile payments and heightened personalization. Online reviews now count for more than star ratings and consumers are taking their time to make informed decisions about where they travel.
Not everything is changing at breakneck speed: France, for example, remains the most attractive market and hotels continue to be the most popular accommodation. But digitalization and, increasingly, an appetite for sustainability are driving the evolution of consumer preferences.
Sustainability
The desire to travel sustainably has now gone mainstream. Travelers are prepared to do their bit to safeguard the environment, and they expect accommodation providers to do the same. Accommodations have made important progress on decarbonization but additional investments of €5,000 per room are needed to reach net zero.
Fortunately, most of these investments are also profitable, meaning the accommodation sector has a golden opportunity to lead on sustainability. Initiatives like the Travel Sustainable program can help to deliver on climate targets, meet customer expectations and deliver growth to the European travel sector.
In the wake of a global pandemic, many people had a chance to reevaluate their priorities and the role of travel in their lives. It’s clear from the numbers presented in this volume that travel is as important as it ever has been. It has the power to foster understanding, tolerance and wonder, and Europe is one of the best places in the world to see the transformative power of travel in action.
Ultimately, the European travel and tourism sector will continue to be shaped by the people who make travel their passion: the receptionists, porters, chefs, hotel managers, tour guides, housekeepers and waiters who work together to provide the unforgettable experiences that make Europe the world’s top tourist destination.
