Summer season Austria 2022 – Strong crisis resilience of the holiday hotel industry and cautious optimism for the winter season
mrp hotels analyzes the results of the summer season in Austria 2022 and gives an outlook on the challenges of the industry in the expected winter season.
Vienna (OTS) – For the first time this year, Austria was able to continue the usual growth in tourism from before the outbreak of the Corona Pandemic. The summer season culminated with August, the most successful month this year, with around 20.7 million overnight stays and an increase compared to 2019 from 2.3% since the beginning of the pandemic. The observed period from May to August is the period with the highest number of overnight stays since the beginning of the pandemic and just missed the level of overnight stays in 2019 (-2%; -1.2 million overnight stays). Vienna Airport also reported a very pleasing increase in passenger numbers of 56% in August. the previous year. This means that passenger arrivals at the most important airport in Austria have reached almost 90% of the pre-crisis level (long-haul business in particular is still below the 2019 level). The increase in foreign guests can be clearly seen as a trend in 2022. While the rediscovered summer vacation of Austrians in the past Corona years represents an important basis for occupancy, many Austrians spent the summer vacation 2022 abroad again.
Strong performance in the holiday hotel industry – winners and losers at a glance
In a comparison of the federal states, the Covid recovery in Vienna is particularly sluggish. Despite the sustained increase in overnight stays since the beginning of this year, the federal capital has not yet been able to close the demand gap compared to the pre-corona level. A loss of 22.2% of overnight stays compared to 2019 is recorded in Vienna in the busiest travel month, which corresponds to around 400,000 overnight stays. Lower Austria and Burgenland are also among the losers compared to the number of overnight stays. 2019. All other federal states were able to reach or exceed the level of demand from 2019. The clear winner in the overnight stay statistics is western Austria, which recorded above-average growth rates, led by Tyrol and Vorarlberg with around 8% in the summer month of August compared to 2019. The summer of 2022 published mostly better than 2019, but the strong demand pressure of the Austrian market could not be prolonged. The holiday products’ resilience to crises is therefore also evident this summer.
Asian and Russian guests stay away
The top three markets of origin in 2022 are led by neighboring Germany, with almost 35% of all overnight stays recorded (approx. 40 million overnight stays), of which by the home market Austria with 27% (27.8 million overnight stays) and the Netherlands with 8% (8th .5 million nights). The Asian travel market is still asleep when it comes to outbound travel. The dramatic extent of the missing Asian guests can be observed in Vienna in particular – a decrease of 92% in Chinese guests, Taiwan 90% and Japan 86% (vs. 2019). These sharp declines are due to the Zero Covid Policy and quarantine upon return to China, as well as increased airfare for travelers from Japan. The Russia-Ukraine conflict is also reflected in the decline in the number of overnight stays by Russian guests in Vienna. In August, 80% fewer Russian guests were recorded than before the Corona outbreak. The American source market, on the other hand, has an advantage when traveling to Austria due to the current exchange rate between USD and EUR.
Outlook winter season – falling costs and slump in consumption?
In a comparison of economic performance, the hotel and catering businesses in Austria still show the greatest need to catch up compared to all other sectors in Austria. The Austrian Recovery Barometer shows a gap of 18.5% in the second quarter of the year. compared to the same period in 2019, so the industry is still in last place. Tourism professionals continue to be concerned about the likely weakening of winter tourism in Austria. The numerous crises and economic effects of the corona pandemic, inflation and the Ukraine war are having an impact on tourism development in the coming winter, but also in the years to come. An expected energy shortage, cost increases, a decline in the economy and consumption coupled with high inflation are currently the greatest challenges facing the Austrian hotel industry. The mechanisms of monetary policy are further reducing society’s consumption. Depending on their positioning, hotel products are affected to varying degrees. As is currently the case in many companies, luxury products are not experiencing any loss in demand. Mid-range hotels, in the classic “four-star hotel” segment, may experience a drop in demand in the coming months. Furthermore, hotels with a high level of contract business (tour operators, corporate contracts) are particularly affected by the loss in value and cost increases, as they are often unable to change their sales prices during the year. In addition to the leisure tourist guest, the business guest will also travel less. The economic situation also allows companies to save further (noticeable in particular for business trips, further training, seminars, etc.). Hoteliers and lift operators fear the electricity and gas prices and trigger restrictions in operations and supply. Partial closures pose a particular threat. The operation of energy-intensive snow-making systems or wellness areas in hotels is being critically questioned.
Industry profitability continues to decline
The rise in energy costs, rising food prices, staff shortages and cost increases are causing hotel operators’ profits to shrink to a minimum. In order to be able to cushion the rising costs and to achieve 2019 values, room price increases or expansion increases of more than 20% would have to be achieved. After adjusting the current sales rates on the market, it can currently be seen that prices could not be raised sufficiently across the board to maintain the profit margins of 2019.
Questions & contact:
Matthew Hoppe | Office manager | office@www.mrp-hotels.com