STUDY: Global Hotel Occupancy Surpasses 2019 Levels

Global hotel occupancy levels for April and May have exceeded pre-pandemic levels. Global hotel bookings in June, July and August 2022 are on par with 2019, according to Amadeus' data insights.
Anna Wolfe
Senior Editor - Restaurants
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After two years of summer holidays lost to COVID-19, there is huge pent-up demand for the 2022 summer season. It is expected to be the busiest since the pandemic began, and hoteliers need to anticipate and be prepared for the demand amidst ongoing challenges amplified by the pandemic.

According to Amadeus’ Demand360 business intelligence data, hotel reservations have been on par with pre-pandemic 2019 booking levels since March this year. April was the first month to surpass 2019 occupancy levels and continued to climb in May hitting a new high of 63%, compared to 60% in May 2019. High performing countries like the U.S. saw occupancy levels of 68% for the month, 7% above 2019’s performance, while Canada reached 64% occupancy in May, 8% higher than the same time in 2019. Forward looking on-the-books data tells a similar story globally with the summer months of June, July, and August currently tracking just 1% off 2019 levels.

For true insight however, occupancy has to be considered alongside a persistently short booking window (number of days travelers are booking in advance of their trip). This data shows that the significant majority of trips (54%) are currently being booked 0-7 days before travel, which means that hotel occupancy rates currently recorded for the summer months could increase significantly. In the case of the US travel market, 55% of bookings are made less than a week prior to travel. Europe is generally slightly more predictable with over a third of bookings (France 33%, Germany 35%, Spain 36%, and UK 39%) made within 0-7 days.

With high demand, the transient average daily rate (ADR) hoteliers are able to achieve has been building steadily from a global low of $83 in April 2020. According to forward looking Amadeus data for June, July and August, the worldwide average ADR is $200 which is just over 11% higher than in 2019 where the average ADR was $180 for the same months. Individual countries are seeing high room rates over the summer, with France forecasted to hit an ADR of $428 in July 2022, which is a 29% increase on 2019 rates.

Remaining restrictions are still influencing where travelers are originating from. Hoteliers, destination management organizations (DMOs), and travel sellers are tracking Amadeus data closely to understand which countries are booking the most flights to their markets, and where additional marketing could help drive demand. According to Amadeus air booking data as of June 4, the U.S. leads all countries in top inbound flights for the forthcoming summer months, followed by the UK, France, Germany, and then Canada.

Amadeus car rental data as of June 3 also shows worldwide demand increasing this year, with 33% more bookings made for the months of June, July, and August compared to the same time in 2021. Rental lengths are also up in 2022 over 2021 (6 days vs 5 days on average), with a higher average daily rate of $102 vs $92. Based on 2021 performance for the summer travel season, 54% of bookings were made within a week of travel, which provides significant opportunities for car rental volumes to grow.

Having access to real-time market insights allows hoteliers and DMOs to target travelers at the right time, at the best rate, in order to rebuild their businesses. For more details on summer travel trends, such as hotel occupancy, ADR, booking windows, top inbound flights and car rentals in the US, Canada, UK, France, Germany, and Spain, as well as a worldwide overview,  visit Amadeus' website.