Amadeus: Global hotel occupancy improves in April

Amadeus’ Demand360 business intelligence data, released this week, shows that hotel occupancy levels are now on an upward trajectory.

According to the Rebuilding Hospitality report, worldwide occupancy reached 46 percent in April 2021, up from the low point of 13 percent in April 2020. This means that global hospitality occupancy has climbed two-thirds of the way back to prepandemic norms of around 70 percent for this time of year. 

Occupancy growth has been faster in some regions than others: China and North America, with occupancy levels standing at 62 percent and 51 percent respectively, are leading the way, driven by domestic travel. Europe’s occupancy recovery has been slower, standing at 18 percent at the end of April. The report suggests this could be explained by ongoing shifts in travel regulations not experienced in other regions. In Asia, overall occupancy was 34 percent for the month of April but shifts significantly based on travel guidelines and size of country.

The data also shows the booking lead time is lengthening, indicating growing consumer confidence to plan ahead, according to the company. For much of the past year, nearly all reservations across the world were made within seven days of travel. In recent weeks, bookings made on the same day of travel, which are the most problematic for the industry to accommodate, have shrunk globally from 39 percent the first week of 2021 to 23 percent the week of April 25, and 31-60 day bookings increased from 6 percent the first week of 2021 to 11 percent the week of April 25.

​The Rebuilding Hospitality report includes a survey of 688 global hoteliers about current sentiment and plans. The survey found several notable trends among the hoteliers:

  • Significant growth optimism: There is a sense of optimism with 30 percent of hoteliers anticipating opening one or multiple sites in 2021.
  • Leisure travelers are driving recovery: The majority (63 percent) of hoteliers worldwide think that leisure travel will drive their recovery with domestic leisure by far the highest contributor (45 percent). In line with this, Amadeus data shows that the U.S., China and the rest of Asia are starting to see an increase in online travel agency booking volume, shifting the focus away from a dependence on direct bookings during the pandemic.
  • Recruiting will be a high priority: Over half (59 percent) of global hoteliers anticipate that they will need to hire new staff in 2021.  
  • Opinion on vaccine passports divided among hoteliers: Over half of Asian hoteliers say they are considering asking for vaccine passports before permitting guests to stay while just under half of hoteliers in the Americas say they will definitely not be adopting this approach. In Europe, the Middle East and Africa, nearly half of hoteliers are uncertain on their strategy in this area. 

The report also includes insights into what trends will have staying power going forward:

  • Enhanced hygiene measures are here to stay: About a third (32 percent) of hoteliers think that they will always need significant social distancing, sanitization and visible hygiene measures.
  • Long-term reduction in guest contact and stayover cleans: 20 percent of global hoteliers indicate they will keep interaction between staff and guests to a minimum for the long term, and 21 percent plan to reduce daily housekeeping for guests.
  • Personalization could help cross the contactless hospitality divide: Over a quarter of respondents (30 percent) said that contactless tech to support personalized guest experiences was one of the developments in hospitality they were most excited about as we emerge from the pandemic. Around one in four hoteliers (24 percent) went on to say they would be turning to technology to support personalized experiences making sure the human touch of hospitality is not lost.
  • Work staycations and long-stay rental investments: Creative business pivots like offering work staycations and investment in facilities that help travelers elongate stays have helped hoteliers test out new strategies to access new guest segments. Hoteliers report that these will stay as part of the portfolio for the long-term.

“The data and trends from this report are intended to draw together insights from hoteliers around the world as we work together as an industry to plan our recovery,” said Francisco Pérez-Lozao Rüter, president, hospitality, Amadeus. “With lower restrictions in place, the U.S. market has provided some early indicators of traveler behavior that could help other international hoteliers understand where they are in the stage of their own recovery. One of the key takeaways from our research and report is that technology will play a central role in the recovery of the hospitality industry, as we found globally 41 percent of hoteliers plan to spend the same or more on IT this year than they did in 2019.”

“One year on from the start of the pandemic we are really pleased to see the early indications of traveler confidence and an uptick in some hotel bookings,” said Katie Moro, VP of data partnerships, hospitality, Amadeus. “Now, more than ever, data is so critically important across an entire hotel business as it informs not only revenue potential but also marketing strategies, staffing and occupancy profile. We want to help hoteliers understand how all the different pieces of data connect together. Data is the foundation that helps you build a better plan and from there, your property is so much stronger from the ground up.”