Key trends in the hotel industry in 2022

Key trends in the hotel industry in 2022

Despite a slow start to the year, the hotel industry in 2022 has seen a full recovery. Direct bookings, occupancy levels and RevPAR rates have all experienced strong growth this year and, as a result, the sector is well-prepared for 2023. In this article, we look at the key trends this year. 

Top gear for full recovery 

A report from RoomRaccoon looks at the hotel industry in 2022 worldwide and concludes that the sector has made a full recovery this year. The findings are in keeping with an EY report published in early November, which claimed that “the global lodging industry has turned a corner in 2022”.

For its part, the RoomRaccoon report highlights the speed of this recuperation, seen in the higher metrics across the board. It reveals that guests have returned to hotels more quickly than forecast and, as a result, occupancy levels and RevPAR rates are now higher than in 2019. In August this year in Europe, for example, occupancy registered a record 64%, up 3% from its previous high of 61% in August 2019. 

“Recovery has come sooner than expected,” said Tymen van Dyl, CEO of RoomRaccoon. “This will come as encouraging news to the industry,” he added, “despite predictions that hotel occupancy would not return to pre-pandemic levels until 2023.”

Key metrics for the hotel industry in 2022

The report highlights the following trends at hotel establishments worldwide: 

More direct bookings 

According to RoomRaccoon, the number of guests making direct reservations with hotels rose by 169% in 2022 compared to 2019. “Greater control over their accommodation bookings” is cited as the main reason for the surge. 

Shorter booking lead time 

In 2022, the average hotel booking lead time stood at 30 days, marking a clear recovery since the pandemic. In 2019, the metric sat at 31 days. The change shows that travellers have regained confidence as pandemic restrictions have eased across the globe. 

Higher RevPAR

European hotels have registered particularly positive RevPAR upticks so far this year. Revenue has risen by 46% during 2022 compared to 2021, with a solid summer season. In August, the average reached a record €105 per room. 

Hotels in Brazil showed more impressive results. RevPAR in high-end establishments soared by 103.5% in the 12 months to September this year. However, the increase compared to September 2019 is also substantial. Revenue rose by 33.6% in September 2022 compared to September 2019, six months before the arrival of the pandemic. At hotels in Northeast Brazil, the increase was even higher, rising by 35.6%.

Consolidated domestic tourism

Despite the opening of international borders, the staycation trend continued during 2022. According to RoomRaccoon, domestic bookings made up 64% of all hotel bookings this year. The company predicts that this sector “will continue to present significant business opportunities for hotels in 2023”. 

(Source: RoomRaccoon)