Europe regresses in October

Rome, Italy

Europe reported a more than five-percentage-point drop in occupancy in October over the previous year, according to HotStats.

Europe also saw a €4 reduction in rate, leading to a 20.7% decrease in revpar.

The drop in revpar resulted in a similar drop in trevpar, which decreased 18.5% over September and was down 76.7% year on year. Total labour costs were down 52.6%, while total overheads were down 45.6%. The drop in expenses was not enough to overcome the fall in revenue, leading to negative Goppar of -€5.06 in the month after two consecutive months of positive Goppar. Profit margin for the month was recorded at -11.1%.

The bright spot in the global hotel industry remained the Asia-Pacific region, where monthly occupancy reached over 50% for the first time, led by China, where occupancy had eclipsed the 60% threshold for the past three months.

After a hiccup in September that saw revpar dip lower than August, it was back up in October to $53, a 17% increase over the month prior. Trevpar hit $101.50 in the month, a sign that ancillary revenue is making its rebound in tandem with room sales. In September, while revpar was lower than August, trevpar was higher, and the trend continued in October.

Goppar reached $27, $9 higher than the month prior, but down 54.8%.

In China, gopher hit $43.25, which was only 12% off from the same time a year ago, illustrating the country’s solid profit comeback from the depths of the pandemic. Profit was bolstered by a similar return to prior-year revenue levels that saw trevpar hit $119.62, just 8.7% below the same time last year.

On the expense side in China, costs continued to rise, perhaps a sign also of the overall recovery. Labour costs per available room hit $32.94, 10.7% less than the same time last year, while total overheads were recorded at $26.56, a 13.7% decrease over the same time a year ago.