‘No rooms available – sorry!’ Whether for business or leisure, finding a room in some of the most popular cities can be difficult, especially around peak travel seasons of events and exhibitions. We took a look at which will be the business cities with the highest occupancy rates in 2017. Book your hotels early if you plan traveling to these cities next year.
Occupancy forecasts and expected trends for 2017 are out. In a recent study by PwC, the highest occupancies in Europe next year are forecast to be in three cities: London (despite high supply additions and only a marginal increase forecast), Dublin, and Edinburgh. These three cities will often sell out during 2017 with occupancy rates over 80% – good news for hoteliers – not say great news for travelers.
In continental Europe, Amsterdam and Rome follow while Berlin, Paris and Prague are not far off. Overall, in 2017, 15 European cities will be over the 70% occupancy threshold, according to this study. Frankfurt could join this list, breaking through the 70% occupancy threshold in 2017.
The fullest city
Any frequent visitor to London has probably suffered a few headaches trying to find an available hotel room and an available room at an affordable price. With a population close to nine million, London is by far the biggest urban area in Europe and one of the largest financial markets. With over 30 million visitors in 2015, the city is a center for business and innovation, and also a major tourist hotspot thanks to its historical sights, and the countless cultural and sporting events. London is indeed calling!
Despite high occupancy, the upcoming months will remain challenging for London hotels and experts provide a caution outlook for the sector with a marginal increase in demand or even a drop-off in demand according to other studies . The slowdown reflects the uncertainty sparked by the UK vote to leave the EU, and the impact of the recent terrorist attacks in Europe.
Increasing hotel supply
Despite the uncertainty, London is quickly building more rooms. The city’s hotel capacity is set to rise by 12% over the next three years. At this pace, the capacity will exceed 150,000 rooms during 2018.
Similarly, Amsterdam has increased its capacity in recent years. To respond to the strong demand forecasts estimate that by 2017 there will be 41,000 hotel rooms in Amsterdam, a considerable increase from the current 30,000.
However, in other cities with high occupancy rates, like Berlin and Paris, hotel supply will grow relatively slow, with not many new hotels opening doors. Finding an available room in these cities will continue remain somehow challenging.
The most expensive business cities
In 2016 the most expensive city for business travelers was Paris, according to the average daily rates (ADR). Geneva drops to the second place, followed by Zurich, London, Rome, Amsterdam and Barcelona. In 2017, all the top rankings will remain the same as 2016. Most of these cities will see further ADR growth, with prices averaging well over 200 euros.