Growing optimism about economic growth is fueling expectation for hotel sector growth in 17 of 18 major European cities surveyed in the third annual PwC European Cities Hotel Forecast. This year’s report explores revenue and occupancy forecasts framed within the context of influential megatrends and challenges facing the European hotel sector.
The following five megatrends have been identified as ones that will have significant impact on the hotel sector’s business models:
- Shifts in global economic power: as the global economy shifts from west to east, the number of tourists from emerging economies is expected to increase. Hotels will need to cater to a more multi-cultural clientele. As the ‘over 60’ demographic increases in number and in purchasing power, hotels will also need to customise their offering.
- Demographics and social change: ageing of the Western world, social change, and stagnation of median incomes across the developed world will all affect the hospitality sector in myriad ways.
- Technological breakthroughs: technological change will be driven by social media, mobile service, analytics and cloud services.
- Accelerating urbanisation: the current rate of urbanisation is unsustainable and the shift from prioritisation on jobs to quality of life is shifting.
- Sustainability, climate change and scarce resources: Resource usage and emissions are unsustainable and hotels will need to explore mitigation and/or adaption.
Download the forecast to find out more.