Hotels in Goa, Himachal Pradesh, and Uttarakhand have seen significant occupancy levels throughout 2022.
Summer travel numbers in April and May show promising numbers. Recent business intelligence reports have found that hotels were fully booked during these two months.
According to a global study by Amadeus, April 2022 surpassed the 2019 occupancy levels and continued to climb in May hitting a new high of 63%, compared to 60% in May 2019.
“It is fantastic to see the revival of travel that is underway,” says Francisco Pérez-Lozao Rüter, President, Hospitality, Amadeus.
India stats impressive
The figures in India also look promising. The country’s progressive approach to vaccinations has led to an increase in travellers and hotel demand during summer.
“We expect occupancy and average room rates to return to pre-pandemic levels by the end 2022 and by mid-2023, respectively,” says Mandeep S. Lamba, HVS President, South Asia.
India’s recovery after the first COVID-19 wave was concentrated in leisure destinations such as Goa and Udaipur. Later, heavily populated markets and metro cities such as New Delhi and Mumbai have seen an increase in numbers, and select leisure markets such as Goa, Himachal Pradesh, and Uttarakhand have seen significant occupancy levels throughout 2022, most times exceeding pre-pandemic levels. Business demand, which was limited after the Delta wave, has shown significant improvement post-Omicron with momentum continuing through April. While there have been early signs of increased COVID cases across some India markets, the country’s hotels have shown resilience thus far.
“Recovery from each wave has been better than the previous, and we expect that trend to continue,” says Matthew Burke, STR’s Regional Director – Pacific, Japan & Central South Asia.
Another reason for the summer surge is the introduction of loyalty programs.
Loyalty program members account for three-fourths of hotel website bookings, according to research by Phocuswright. Meanwhile, as per a study conducted by Cornell University’s The Center for Hospitality Research, hotel loyalty programs accounted for a 57% increase in room revenue.
Meanwhile, global data by Amadeus reveals that transient average daily rate achieved on room bookings globally has increased by 11% over 2019 with the majority of hotel bookings still being made within a week of travel.
High performing countries like the US 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.
Katie Moro, Vice President, Data Partnerships, Hospitality, Amadeus, says, “This comprehensive travel data will be instrumental in helping the travel sector strategize and prepare for a welcome summer surge. The data clearly shows the proportion of travelers that are booking in the last seven days before travel, for example, which should give hoteliers the confidence to keep their room rates steady and not be tempted to drop them to attract more business.”
According to Amadeus data for June, July, and August 2022, 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, 2022, the US leads all countries in top inbound flights for the forthcoming summer months, followed by the UK, France, Germany, and Canada.