Why hotels stays top choice for European travellers

The hotel iindustry is poised for continued growth as travellers seek comfortable, convenient, and reliable accommodations

Why hotels stays top choice for European travellers
Caption: hotel industry witnessing a steady growth over the past year or so
Source: Opportunity India

Dubai:  European travellers are showing a strong preference for hotels, even as prices have soared in recent years. This trend is driving record revenue and user numbers for the European hotel industry, reflecting a continued demand for traditional accommodations.

High hotel demand across top European economies

According to data presented by Stocklytics.com, over 60% of travellers from Europe's leading economies (Germany, the UK, France, Italy, and Spain) choose hotels for their stays.

This preference for hotels over other accommodations remains strong despite significant price increases. Spanish travellers lead the way with 70% opting for hotels, likely due to generally lower accommodation costs in Spain compared to other Western European countries. Britons follow closely at 64%, with Germany at 62%. Italy and France come in at 56% and 48%, respectively.

Apartments: The primary alternative

The Booking survey showed that for most European nationalities, apartments are the leading alternative to hotels, with an average of 25% of travellers choosing them. This preference for apartments likely reflects a desire for more space and flexibility, especially for families or those staying for extended periods.  Italians, however, favor bed & breakfasts as their next preferred option. This may be attributed to the cultural significance of bed & breakfasts in Italy, offering a more personalized and intimate experience.

Vacation rentals see a lower share, averaging 14% among respondents from the five surveyed countries. This could be due to factors such as higher prices and less flexibility compared to hotels or apartments.

Booming European hotel industry

According to a Statista Market Insights survey, Europeans will spend $114 billion on hotels in 2024, or $14 billion more than last year. Europeans are projected to spend a record-breaking $114 billion on hotels in 2024, a $14 billion increase from last year.

This significant rise in hotel spending indicates the growing popularity of hotels among European travellers.  The number of hotel users in Europe is expected to reach over 287 million this year, a 15 million increase from 2023. This surge in hotel users is a testament to the industry's ability to meet the increasing demand for accommodations.

By 2030, this figure is expected to climb to nearly 340 million. This projection highlights the continued growth potential of the European hotel industry, driven by the enduring preference for hotels among European travellers.

This surge in hotel demand demonstrates Europeans' continued preference for hotel stays, even with rising costs. The industry is poised for continued growth in the coming years, as travellers seek comfortable, convenient, and reliable accommodations for their trips.