Europe’s Halting Growth
In Europe, performance continues to lag other global regions, as COVID-19’s impact on the continental population has not yet fully loosened its grip.
Occupancy remained below 20% in April, and with average rate only up $8 since the same time a year ago, RevPAR only hit $16, which, though 225% higher YOY, is still wildly off from its pre-pandemic level, down 85.5% from April 2019.
With TRevPAR still muted at $28.85 in the month, and expenses creeping back as properties reopen, hotels suffered the ignominy of negative GOPPAR for the seventh consecutive month.
There is good news on the horizon for Europe: an agreement by the European Union to relax travel restrictions from those outside the bloc. Ambassadors from the 27 EU countries agreed to ease the criteria for non-E.U. nations to be considered a “safe country,” from which all tourists can travel. Up to now, that list consisted of only seven nations: Australia, Israel, New Zealand, Rwanda, Singapore, South Korea and Thailand.
The proposal would be a shot in the arm for European tourism, after the number of foreign visitors dropped by 70 percent in 2020.
China Ride
April was another month of continued success for Asia-Pacific’s hotels, but an upsurge in COVID cases could dampen performance. Occupancy in the month remained above 50%, as RevPAR surged to a level 241% higher than at the same time last year.
As total revenue remained steady, so, too, did GOPPAR, which at $25.80 was up 276% YOY.
Asia-Pacific’s overall performance has been buoyed by China, where occupancy hit close to 70% in April, at or near historical levels. In the month, GOPPAR reached $41.78, which is less than $4 off its April 2019 level. And there is still room for improvement. While domestic business aircraft travel in China has recovered by a reported 95%, international charter activity is still sitting at less than 20 percent.