Hotel Market Study H1 2014 Vienna Austria Salzburg

Transcription

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Hotel, Tourism and Leisure
HOTEL- AND TOURISM MARKET REPORT,
AUSTRIA & SALZBURG & VIENNA
H1 2014
Horwath Hotel Tourism Leisure
with the latest trends of Austria’s hotel sector
© 2014 Horwath HTL
28.08.2014
HOTEL- AND TOURISM MARKET REPORT, AUSTRIA & SALZBURG & VIENNA
HORWATH HOTEL TOURISM LEISURE
AUSTRIA
Austria Overview
In 2013, 36.8 million visitors came to Austria with an average per day spending of EUR 96.
“Tourist spent on average EUR 96 a day.”
Austria's tourism industry contributes significantly to its
economic performance. In 2013, total direct (4.9%) and
indirect added values was EUR 42.0bn (13.4% of GDP).
This means that about every seventh Euro earned is related
to tourism and leisure activities. About one third of total
tourist expenditure, amounting to EUR 29.48bn per year is
spend on accommodation, whilst approximately 26% is
spent on food and beverage. More than 200,000 employees work in a tourism-related job.
Austria has an unemployment rate of 4.9% (April 2014),
which is still the lowest within the EU. Inflation rate is
above the EU-value but still under 2%. Projections for the
upcoming two years in terms of GDP are 0.8% and 1.1%
respectively. According to IHS inflation is estimated to be
1.7% and 1.9%.
“Austria is European market leader for winter holidays with a market share of 50%.”
Generally speaking, Austria is a popular tourism destination for both summer and winter tourism. Austria is European market leader for winter holidays with a market share
of 50%. For example, destinations for winter tourism that
will generate more than one million overnight stays are
Soelden, Saalbach-Hinterglemm, Zell am See-Kaprun and
Ischgl.
For Austria, tourism is an important export product. Foreign
tourists account for about 70% of overnight stays. Mainly
due to its geographic location, the German market is the top
performer with every second inbound tourist from Germany.
The second most important inbound markets are from The
Netherlands and neighbouring Switzerland. Besides these
traditional tourist generating countries, Austria gained substantial growth from emerging tourist markets. Examples are
the CEE countries with Poland, Hungary and Czech Republic,
as well as more distant countries such as Russia, China, India
and Brazil (BRICS).
“Foreign tourists account for about 70% of overnight
stays.”
Its strong performance is driven by factors such as tourism
infrastructure, a welcoming attitude towards visitors, a very
safe and secure environment and most of all its cultural resources. Austria hosts nine World Heritage cultural sites and
has by far the highest density of museums per inhabitant.
“Austria ranks 3rd according to Travel and Tourism
Competitiveness Report 2013.”
The country’s tourism industry is being developed focusing
more and more on sustainable green tourism. Due to some
of the most stringent and well-enforced environmental regulations in the world, its overall performance on environmental sustainability is ranked 6th.
“12,500 hotels, with an average occupancy level of
approx. 69.5%.”
In total Austria received 132 million overnight stays in
2013, a new all time high. Austria’s supply sums up to approximately 292,000 rooms or 12,500 hotels, with an average occupancy level of approximately 69.5%. That
means over 55% of overnight guests stay in hotels. Although growth rates for 5-/4-star hotels has flattened the
segment gains market share over the other categories.
www.horwathhtl.at
©Foto Credit: Österreich Werbung, Joe Wörgötter
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Economic Impact of Tourism in Austria
In 2013 Austria’s tourism industry directly contributed EUR
15.3 billion (4.9% of GDP) to its economic performance. This
is expected to rise by 6.2% to EUR 16.2 billion in 2014 and
primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services).
But it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.
The direct contribution of Travel & Tourism to GDP is presumed to increase by 3.3% pa to EUR 22.5billion (6.1% of
GDP) by 2024.
% of whole economy GDP
7%
6%
5%
4%
3%
2%
1%
0%
2008
2009
2010
2011
2012
2013
2014
2024
Source: WTTC
“Travel and Tourism contributes with 13.4% to the
GDP.”
% of whole economy GDP
The total direct and indirect added values of Travel and Tourism to GDP (including wider effects from investment, the
supply chain and induced income impacts) were EUR 42.0
billion in 2013 (13.4% of GDP). A growth of 5.5% to EUR
44.2 billion (13.9% of GDP) in 2014 is forecast. By 2024 it is
expected to rise by 3.0% pa to EUR 59.5billion (16.0% of
GDP).
20%
15%
10%
5%
0%
2013
2014
Direct
“5.3% of total employment is generated by the tourism
industry.”
2024
Indirect
Induced
Austria’s tourism industry generated 224,500 jobs1 directly
in 2013 (5.3% of total employment) and this is predicted to
rise by 5.4% in 2014 to 236,500 (5.6% of total employment).
By 2024, it will account for 301,000 jobs directly, an increase
of 2.4% pa over the next ten years.2
Source: WTTC
% of whole economy
employment
8%
7%
6%
5%
4%
3%
2%
1%
0%
2008
2009
2010
2011
Source: WTTC
2012
2013
2014
2024
2013 proved to be another successful year for the travel and
tourism industry in Austria. The direct contribution to the
GDP is increasing constantly and expected to reach the record level 2008 again. Also, the indirect added values and
the tourism generated jobs show rising figures for the upcoming years.
Receipts for the winter season 2013/14 decreased by 4.2%
compared to previous year and accounted for 8.1 billion.
1
This means employees working for hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also
includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.
2 WTTC, World Travel & Tourism Council
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Arrivals and Overnights Austria
In 2013, a total of 132.6 million overnight stays have
been reported; which is a rise of 1.2% compared to 2012.
“From 2010 to 2013 the CAGR of the arrivals was at
3.3% and the CAGR of the overnights was 2%.”
The growth was due to an increase of overnight stays by
guests from abroad (+1.9%, 96.9 million). Domestic
overnights declined by 0.6% to 35.8 million.
Arrivals increased by 1.9% to 36.8 million, an average
annual growth of 2.6% since 2010. A slight rise of 0.2%
(12.0 million) was observed among Austrian residents
and an increase of 2.7% (24.8 million) among guests
from abroad.
“In 2013, almost one quarter of total overnights
was generated by domestic tourism.”
We expect these figures to grow over the coming years
because the idea of taking a holiday within Austria has
grown more appealing to Austrian residents, therefore
improving the number of domestic overnight stays.
Austria has received positive growth according TourMIS
data, but only ranked 22nd in terms of arrivals and 16th in
term of overnights of the 24 countries reporting data.
“Europe performed better than Austria.”
Demand for European tourism in 2013 was stronger than
expected at the start of the year, helped by improvement in
eurozone economic activity and some improvement in intra-regional travel. Arrivals growth in all European destinations reported by TourMIS averaged 4.6% for the year to
date on a weighted average across all countries. Growth in
overnights with 4.0%, slower than growth in arrivals, indicating some lingering softness in demand for travel to
European destinations. Overall, Europe performed better
than Austria did, and in sum 14% higher than the pre-crisis
peak level in 2007. This positive trend is expected to continue through 2014, as the euro area (+1.0%) is turning the
corner from recession to recovery, according to the IMF.
The outlook we expect is for international tourism to grow
between 3% and 4% in 2014, in line with ETC, UNWTO and
Tourism Economics projections. The economic performance of Europe’s internal market remains decisive to determine the regions’ performance, influencing both international and domestic travel, the length of stay and the average holiday budget. With an increasing number of destinations targeting luxury segments, such as travellers interested in golf, spa and wellness or wine and gourmet, tourism-generated revenues are also expected to ultimately
grow in line with arrivals and will increase competition for
tourism in Austria.
Arrivals and Overnights in Austria (in million)
Arrivals
Overnights
2010
2011
2012
2013
H1 2013
H1 2014
33.4
34.6
36.2
36.8
17.7
18.0
124.9
126.0
131.0
132.6
67.2
66.3
Source: Statistic Austria
www.horwathhtl.at
Second mildest March since the measurement history and
late Easter caused a slight fall of overnights, but brought an
increase of arrivals.
In the first half of 2014 a total of 66.3 million overnights
were reported, this corresponds to a decrease of 1.4% from
2013. All accommodation types have been affected by the
downturn, the most significant being the 5-/4-star and 3star hotel industry. The arrivals increased by 1.8% to 18
million guests.
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Development of Overnights and Supply Austria
In the period 2010 to 2013 the 5-/4-star hotel segment had
a CAGR of 2.6% and the 3-star hotel segment a CAGR of
1.1%. The 2-/1-star segment records the same numbers as
in 2010, despite a decrease in 2011 and an increase in
2012. The 5-/4-star hotel segment was the only segment
with growth in the year 2013. More than half of the 85.6
million overnights in hotels were recorded at 5-/4-star hotels in 2013. The smallest share of overnights was recorded
in the 2-/1-star hotel segment.
“The 5- and 4-star hotels
are the preferred segments.”
Development of overnights according to
hotel categories (in million)
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
5-/4-star
3-star
2-/1-star
2010
44.1
26.8
10.5
2011
44.9
27.1
10.4
2012
46.8
27.7
10.7
2013
47.6
27.7
10.5
©Foto Credit: Österreich Werbung, Foto: Lammerhuber (left) / Bartl (right)
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Source Markets Austria
The most important source market for Austria is the German market, generating nearly 39% of the overnights. Austria received positive growth according to TourMIS data,
ranking 13th of the 24 countries reporting overnights data
from Germany. Due to its geographical location the average length of stay is lower. As there is a relation between
consumer spending and overnights in Austria.
The overnight stays of guests from Germany rose by 2.5%.
We expect declining demand from the German market because as economic consumption rises German vacationers
tend to favour long-distance destinations.
With a considerable gap between Germany and the second
source market, the Dutch followed with a share of 6.9%
overnights, Switzerland and Lichtenstein rendered a share
of 3.5%.
“In 2013, Russia achieved the strongest increase in
overnights with 9.5%.”
Russia is expected to further consolidate its significance in
growth of overnights as its rising middle-class becomes
more acquainted and accustomed to travel. However, the
current political crisis between Russia and the Ukraine will
have an impact on travel behaviour.
The UK recovered with a share of 4.2% of overnights,
slightly below EU average (5%) although our 2014 expectation is a decline to a share of 3.8%.
Less overnights where recorded from the Netherlands with
-2.7%, Italy with -4.8% and France with -0.6%. Domestic
guests also show a decrease of -0.6% in comparison to the
year 2012.
Boosted by a rising currency, Chinese tourism is expected
to match recent years’ performance, marked by remarkable
growth in virtually every destination in Europe. Megaevents and the overall policy environment might instead
lead to a softer growth of outbound travel from Brazil. Japan’s performance as an outbound travel market remains
hard to predict, as uncertainty on the quickening economic
growth remains high. The market of the Gulf States is very
attractive due to high expenses.
In the first half of 2014 the domestic overnight stays declined by approximately 100,900, this corresponds to a
decrease of 0.6%. The overnight stays by foreign tourists
dropped by about 1.3 million (-1.5%).
The growth of a number of medium-sized and smaller
markets could partly pick up the retracement of the top
countries. Germany (-4.6%), Russia (-3.6%), France and
Netherlands (-2.6%) have the largest share of declines in
overnights.
The table underneath presents the changes of the first half
in 2014 in comparison to the first half of last year.
Source Market Development Overnights (in million)
Country
2010
2011
2012
2013
Austria
35.0
35.3
36.0
35.8
Germany
H1 2014
YTD
2014F
2015F
0.6 %
1.7%
2.9%
48.2
47.4
49.6
50.8
-4.6 %
-0.2%
-1.2%
Netherlands
9.1
8.9
9.4
9.1
-2.6 %
-2.2%
-0.8%
Switzerland
3.8
4.3
4.6
4.6
1,7 %
-1.2%
2.4%
UK
3.3
3.1
3.2
3.3
-2,1 %
-5.2%
-1%
Italy
3.0
3.0
2.9
2.8
7,1 %
4.4%
3.8%
Belgium
2.5
2.6
2.6
2.6
2,2 %
-0.4%
-0.6%
Czech Republic
2.0
2.1
2.1
2.2
3,0 %
0.2%
-1.1%
Russia
1.2
1.5
1.8
2.2
-3,6 %
17.2%
18.9%
France
1.8
1.8
1.8
1.8
-2,6 %
-1.4%
-1.2%
www.horwathhtl.at
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Austria’s Hotel Market & KPI´s
The hotel investment market recorded a number of individual transactions to the amount of EUR 430 million in
the first half of 2013, which is a new record.
"Motel One is the rising star in this year's Horwath
HTL Austria Investment Ranking."
Accor remains the top performer of the hotel management companies active in Austria and was rated AA in the
latest issue of the Horwath HTL Investment Ranking
2013. Rising star is Motel One with its trendy design
budget concept, whereas Falkensteiner got downgraded.
Austria has a strong reputation as a safe place to invest
due to rising prices in all areas and segments. Especially
the value of luxury hotels is already far above replacement costs (especially trophy assets in Vienna). Vienna,
Salzburg or Innsbruck and destinations in the provinces
are the target of investors. Nowadays, mainly private investors with CEE, Middle East and Chinese origin invest in
Austria. From this positive investment outlook many hotel management companies are benefiting from this.
"The hotel key performance indicators of the first half
of 2014 have remained constant."
Whereas the occupancy rate has slightly increased to
66.6% (+1.3%) in comparison to the first half of 2013, ADR
presents slight decrease, ADR EUR 93.19 (-0.03%). RevPAR
has slightly increased to EUR 61.10 by +1.22%.
"The results of 2013/H1 2014 do bring confidence:.
The figures ADR and RevPAR
remained constant”
The performance indicators for family owned 5-/4-star hotels in 2013 are: EUR 3.5million annual revenue potential
or EUR 141 RevPar and 80% bed occupancy, resulting in
30% GOP or EUR 13,000 per room and 15% EBDIT. The
gross value added in Austria was EUR 3.46mn.
KPI´s Austria
100
100 %
80
80 %
60
60 %
40
40 %
20
20 %
0
2010 2011 2012 2013
H1
H1
2013 2014
Average Room Rate
(€)
89
94
96
94
93
93
RevPAR (€)
62
65
67
66
61
62
Room Occupancy
(%)
70
69
70
70
65
67
0%
Source: STR Global
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Tourism Outlook Austria
Our forecast models show a GDP growth of around 0.6%
and respectively 1% for the upcoming 2 years and a CPI of
slightly less than 2%.
We expect tourism to grow between 0.5% and 1.4% although due to the mild winter some leading skiing resorts
have already reported up to -20% less overnights compared to last year’s figures.
More frequent travel but shorter holidays
One strong trend in Austria was the move towards shorter
holidays, either spent in a domestic destination or comprising a long weekend city trip. “Ski-week” is a wellestablished tradition among affluent Austrian families, and
it is usually spent in one of the Alpine resorts. 3-day getaways grew in popularity at the expense of longer trips.
One reason is the high cost of a regular week, with an increasing number of tourists unable to afford such holidays.
Another popular short trip option was to visit one of the
many spa and wellness resorts for respite or treatment.
The increasing cost awareness also leads to less seasonal
fluctuations, as the traveler will choose the off-season for
their holidays.
It is predicted that the length of stay will continue to decline. In 1995 there were still 4.8 nights on average, today
there are only 3.6.
Austria as a whole year destination
Austria’s holiday destinations focus on infrastructure projects in order to extend the summer season. In the past,
every destination aimed for its own conference centre or
public spa. Today the ski mountains are promoted, for example, with themes and positioning of Culture, Sports and
adventure.
"Discover the fall. Holiday in Austria." This is the title of the
new campaign of Österreich Werbung. It aims to promote
Austria as a year-round destination. Austria has, with the
clean environment and the unique nature, the best condition as a wellness destination with holistic concepts.
©Foto Credit: Österreich Werbung, Popp Hackner
Problem of succession arrangements
Another problem for 2014 and beyond is that about 30% of
the family owned businesses will have problems to find a
suitable successor due to high interest rates and taxes, the
immense generation conflict and missing know-how of the
successors.
Boom of apartment buildings
©Foto Credit: Foto Falstauer
Feedermarkets
So far, the German market contributes the most to Austria’s tourism imports, but a slight decrease of 0,2% in
2014 and -1,2% in 2015 is expected. This is justified by the
higher economic growth and thus increased demand for
long distance travel. Not only the numbers of domestic
tourists will rise but also the CEE countries will become
more significant. In 2013, the proportion of the total foreign arrivals was at 12%. A challenge for tourism companies is to offer adapted programs and services so that different needs can be fulfilled.
www.horwathhtl.at
Main obstacles in Austria’s tourism are the ongoing and fast
increasing numbers of apartment constructions, mainly but
not limited to western Austria tourist destinations. They
were initially discovered to increase equity capital for redevelopments (e.g. extension or renovation of existing hotels), but the fast development impedes the hotels’ business. For communities the developments mean high infrastructure costs and a constant increase in sealed areas. Furthermore a complete change in tourism patterns by the decrease in demand in classical accommodations like hotels, as
an outcome of the current market situation is likely, because
the majority of the buyers come from the main origin markets (Germany, Netherlands, Russia, etc.).
Alternative accommodation types
The development of new alternative types of accommodation, the timeshares or vacation rentals like Airbnb,
HomeAway and VRBO, also reflects the changes in consumer
behaviour; the search for togetherness and low cost places.
This new trend could become a challenge for classical hotels, when the mainstream acceptance increases.
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The Internet is expected to shape growth within travel and
tourism
Key economic risks for Austria still loom on the horizon. While
traditional retailing formats are set to register only moderate
value sales growth, it seems clear that internet retailing is expected to continue to grow strongly to support the overall
performance of travel and tourism. As such, online travel
agencies are projected to post positive constant value growth.
Social Media
The customer of tomorrow is no longer the consumer of yesterday. He is linked to the social web and relies on information
offered by the many social media platforms. An average traveller looks at around 22 websites before doing a booking.
Online ratings, pictures and guest comments are strong influencing factors.
It is essential that a company represents itself and its product
on the social web and engages its customers to create positive
content.
Reputation management, quality management and benchmarking benefit from a successful social media appearances.
Mobile devices / Smart Phones
Besides social media, mobile devices represent a revolution for
the tourism industry. According to Euromonitor International,
mobile devices are expected to become the key customer service tool in the industry within the next five years.
They already function as a new reservation channel and it is
expected to have increasing impact on the online travel value
sales in the future.
Hotels will need to adapt to mobile compatible websites to
comply with the needs of customers and not to lose out on
business.
Happiness Management
The most important asset for the tourism industry is the
staff and their individual creativity. Employees represent
the company and convey the values of the business.
Companies have to make sure that satisfaction is high
among the employees, which is a precondition for increasing productivity, responsiveness, quality, and customer
service.
The search for qualified employees in tourism is becoming
increasingly difficult. Despite rising unemployment – in
April 2014 there were 51,278 unemployed people in the
tourism industry - thousands of jobs remain unfilled.
Not only finding the right employee but also keeping
them can be a challenge for the industry. Companies need
to find measures to attract new and keep existing employees.
The cuisine of Austria
Overnight stays by domestic tourists will continue to
grow. Apart from the staycation being a cheaper option,
Austria’s good food and drinks encourage Austrian consumers to take at least some days of their holiday in their
own country. Rising interest in local cuisine and a healthy
lifestyle boosts domestic tourism as many Austrians cherish regionally grown, and increasingly organic, products.
In addition, many Austrians have begun to rediscover the
excellent tourism infrastructure of their own country. Austrians image can benefit from its purest spring water that
can be taken as drinking water from a tap and from organically grown products.
“By 2017, it is expected that the mobile channel
account for over 30% of online travel value sales.”
Million units
Forecast Global Sales Volume of
Internet Access Devices by Type 20122017
1600
1400
1200
1000
800
600
400
200
0
Smartphones
Tablets
Netbooks
Laptops
Desktops
2012 2013 2014 2015 2016 2017
Source: Euromonitor International, Horwath HTL
www.horwathhtl.at
©Foto Credit: Österreich Werbung, Fotograf: Fankhauser
Nutrition
The topic of healthy eating and sustainable agriculture is
becoming increasingly important. A growing interest in
the origin of the product is arising. Austria is already an
attractive country in terms of sustainable production and
clean drinking water.
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Hotel Performance Expectations – Sentiment Study Austria – First Half of 2014
The annual survey conducted by Horwath HTL provides
interesting insights about the mood and expectations of
hoteliers in relation to the hotel market development for
the coming year.
The Sentiment Study from the Austria office, as a part of the
global study, shows that the sentiment scores of Austria’s
hotel industry have been falling since the July 2012 survey
and reached a three year low. Hotel operators in Austria see
the upcoming months pessimistic in contrast to the assessments of the European and global hotel operators.
Regarding their own hotel’s performance, hoteliers are very
pessimistic compared to their German neighbours and are
also under the global average.
The highest increases were expected in ADR and revenue,
but with preliminary results of the winter half-year 2013/14
the pessimists seem to be right.
The three factors, local economic growth trends, global
economic growth trends and local tourism trends, are expected to have the most positive influence on hotel market
performance in 2014.
Nevertheless almost half of Austrian hoteliers expect a better performance of occupancy and room rate. The expectations for revenues are very dissonant.
Source: Horwath HTL
Source: Horwath HTL
Almost half of the Austrian hoteliers expect the key performance indicators to increase up to 5% for 2014. However, also about a quarter of respondents are pessimistic
and believe in a decline.
www.horwathhtl.at
In contrast to 2013 the demand of the Leisure FIT and Leisure Group segments is expected to grow. The demand of
the Corporate and MICE segments is presumed to deteriorate.
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Hotel Performance Expectations – Sentiment Study Austria – Second Half of 2014
The second survey conducted by Horwath HTL provides
insights about the mood and expectations of hoteliers in
relation to the hotel market development for the coming
half year 2014.
Austria´s hoteliers have the most optimistic average sen-
Hoteliers in Austria have recorded significant improvement
in their sentiment towards the market outlook for the second half of this year in comparison to the same period last
year.
Regarding their own hotel´s performance more than
timent score of 46 points in regard to the market performance for the second half of 2014 in comparison to
the European and global average.
three quarters of Austria’s hoteliers has an expectation of
growth, primarily up to 5 percent.
With so much economic uncertainty across the globe,
Performances of all three indicators in the first half of 2014
have met hotel operator’s expectations of the January Survey. Hoteliers are pleased with their expectations regarding
occupancy levels and revenues.
Half of the respondents was slightly disappointed with average room rate performance.
sentiments in Austria’s hotel industry are weighed down.
More than a third believes that demand was still affected
more than expected.
100%
90%
80%
Much More
12%
70%
More
35%
Much Better
60%
Same
Better
50%
Same
Worse
40%
Less
53%
Much Less
Much Worse
30%
20%
10%
0%
Occ
ADR
Source: Horwath HTL
www.horwathhtl.at
Rev
Source: Horwath HTL
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Initiatives of the Österreich Werbung
In order to boost Austria as a destination for tourists the
Österreich Werbung introduced some initiatives in 2013.
One was the advertising campaign "go skiing again. Welcome back." Thus, the skiing shall be rediscovered with
customized offers in Germany.
Moreover the Österreich Werbung is currently working together with the Ministry of Economy, Family and Youth and
the Austrian Federal Railways (ÖBB) on ideas for sustainable
products and alternative mobility solutions to meet the
needs of consumer demands for greater sustainability.
With a sign for sustainable environmental protection, Tourism businesses guarantee compliance with strict environmental criteria, thus conserving valuable resources.
With the CSR seal (Corporate Social Responsibility),
participating companies take social and environmental responsibility and ensure sustainable development
Our assessment is that such packages, cleverly marketed,
consisting of attractive, as well as for the customer noticeably comprehensible performance elements, bring not only
an advantage for the destination (traffic volume, soft holiday factors on site), but also enable the more sensitive
guest to a resource-saving holiday.
©Foto Credit: Österreich Werbung
OUR CONSULTING SERVICES FOR YOUR SUCCESS:
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



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HOTEL, TOURISM & LEISURE CONSULTING
HOTEL ASSET MANAGEMENT
REVIEWS / VALUATIONS
TRANSACTIONS
BUSINESS RECOVERY
PLANNING AND DEVELOPMENT OF HOTEL, DESTINATIONS
AND MOUNTAIN SPORTS AREAS


FEASIBILITY STUDIES
MARKET ANALYSIS AND POSITIONING
www.horwathhtl.at
CONTACT DETAILS OF YOUR CONSULTANTS:
HORWATH HTL AUSTRIA
Hotel. Tourism. Leisure.
Erzabt-Klotz-Straße 31
5020 Salzburg
Austria
Tel. 0043 (0) 662 83 26 00
Fax. 0043 (0) 662 83 08 83
E-Mail: office@horwathhtl.at
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SALZBURG
Salzburg Overview
With a population of 147,825 people, Salzburg is the fourth
largest city in Austria, after Vienna, Graz and Linz and is located on the border of Germany, at the northern boundary
of the Alps. It is internationally reknown by the Salzburger
Festspiele and the old town, which is dominated by churches, the Salzburger Cathedral, Mozart’s Birthplace and the
famous Castle Hohensalzburg.
Salzburg acts as the economic center of Europe and is
ranked among the most economically dynamic regions in
Europe. The regional GNP (BIP) was EUR 42,500 per inhabitant in 2012 and the average annual growth rate (1995–
2012) of the regional GNP is 3.8% (comp. Austria 2.5%). In
2013 the unemployment rate grew from 4.7% to 4.9%.
Salzburg is Austrian’s trade fair and automobile metropolis. It is a powerful industry with global players like
Palfinger, Red Bull, Spar and Salzburg Porsche Holding.
The city is serviced by comprehensive road, rail and air
connections. The city’s train station acts as a hub for
southbound trains through the Alps into Italy, and frequent east-west trains servicing Vienna, Munich, Innsbruck, and Zürich.
©Foto Credit: Tourismus Salzburg
www.horwathhtl.at
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Salzburg Airport Statistics
Salzburg Airport is the most successful and most active regional airport in the country. In 2013 more than 1.6 million
passengers were recorded. Especially in winter, many charter flights from east Europe approach the airport loaded
with winter holidaymakers in Salzburg and its Alpine destinations.
Significant increases were observed at Salzburg Airport in
passenger traffic on scheduled flights. 1,135,639 passengers on important connections were counted. This represents an increase of 3.9%.
Following the trend, the numbers on charter flights - both
outgoing (-12.7%) and incoming (-0.8%) declined compared to 2012.
Passengers who are flying into Salzburg are "high-class"
passengers. Here mainly 5 or at least 4 star hotels are
booked. Meanwhile many "wealthier" passengers also use
the opportunity to travel by private plane.
Of the approximately 1.7 million passengers about one
million passengers account for the incoming tourism and
generate in Salzburg about 1 billion Euros of added value.
The airport in Salzburg generates a value (incl. regional
guests’ expenditure) of more than 7,000 jobs in the state of
Salzburg (airport location around 3,000 jobs, effects of
guests spending guarantee around 4,000 jobs).
Air travel is an important indicator for the European and
global current economic situation. Air traffic is the first area
where declines or increases are recognized.
Declines also affect the Austrian market and specifically the
Salzburg and Tyrolean market. Salzburg and Tyrol are
shaped with heavy winter tourism. The weather conditions
this winter have caused declines in the winter sports regions. We will probably notice these declines next year
also, because disappointed guests might not come back.
Here the market needs to develop "packages" to keep the
market attractive.
Passenger Movements Airport
Salzburg
1,800,000
1,700,000
1,600,000
1,500,000
1,400,000
1,300,000
1,200,000
1,100,000
1,000,000
Passenger
2010
2011
2012
2013
1,625,842
1,700,983
1,666,487
1,662,834
Source: Airport Salzburg
© Foto Credit: Airport Salzburg
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Exhibitions, Congresses and Events Salzburg
Salzburg is a major exhibition and convention site. In 2013,
644,000 visitors from 18 countries visited around 32 trade
fairs and exhibitions. Messe Salzburg recorded a passenger
increase of 7.1% from 2012 to 2013. Next to the exhibition
center complex there is the event location Salzburg Arena,
which counted 95,000 guests in 2013.
The extent of the MICE business is on the radar of the
authorities.
©Foto Credit: Tourismus Salzburg
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Arrivals and Overnights Salzburg
Salzburg is Austria's second most popular city in terms of overnight stays.
The year 2013 has shown a tourism record with 1.44 million
arrivals and 2.55 million overnights. This is an increase of about
2.5% each compared to the previous year. From 2011 to 2013,
arrivals have shown a CAGR of 6% whereas overnights increased by 5.2%.
"Promising results in the first half of 2014."
In the first half of 2014 a total of 1.11 million overnights were reported, this corresponds to an increase
of 3.5% to 2013. The arrivals reached a growth of
4.3% to 640,023 guests.
Due to the continuing weak economic development in 2013,
the long lasting bad weather conditions as well as the flooding
in large parts of Austria, the number of bookings has led to low
capacity utilization and declining revenues at the Salzburg hotels compared to previous years.
Arrivals and Overnights in Salzburg
(in ´000)
3,000
2,500
2,000
1,500
1,000
500
0
2011
2012
2013
H1 2013
H1 2014
Arrivals
1,273
1,388
1,444
614
640
Overnights
2,293
2,487
2,552
1,076
1,114
Source: Salzburg Tourist Board
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Source Markets Salzburg
The most important source market for Salzburg is the
domestic tourist. The Austrians recorded about 700,000
overnights, followed by Germany with 500,000 in 2013.
This is an increase of 2.3% and 3.3% from 2012 to 2013.
Italy, Great Britain and the United States of America are
further prominent visitors to Mozart’s city. It should be
noted that British visitors grew by 10.8% and Italians decreased by 8.2%.
In the year 2013, visitors from Turkey, Saudi Arabia and South
Korea recorded a growth rate of more than 40%. These markets can be seen along with China as potential future key markets. But this market achieved only an increase in overnight
stays by 5.3% from 2012 to 2013.
The table below shows the promising markets with the highest
growth rates in overnight stays since 2009.
Development of overnights of promising markets
Country
2009
2010
2011
2012
2013
Growth
2009-2013
H1 2014
YTD
China
20,918
20,930
37,725
58,780
61,917
196%
20.39%
Russia
19,414
24,347
31,163
40,304
43,334
123%
-1.31%
South Corea
12,790
12,191
22,291
31,725
44,423
247%
22.17%
Taiwan
10,148
8,573
20,127
18,548
19,618
93%
62.31%
Czech Republic
14,614
14,749
20,713
17,719
21,292
46%
24.97%
3,563
4,466
5,306
5,846
8,460
137%
58.20%
Turkey
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Hotel Market Salzburg
In total, the city of Salzburg comprises 124 hotels with a
total supply of 5,701 rooms and 11,345 beds.
By far the highest room count is the 4-star segment with
a market share of 55%. The share of the 2-/1-star and 5star segment is roughly 10% and 3-star hotels represented approx. 25% market share.
Hotel Supply Salzburg City 2013
Number of
Hotels
Category
Number of
Rooms
Occupancy
%
5-star
6
494
49.5%
4-star
48
3,119
54.7%
3-star
50
1,584
55.3%
2-/1-star
20
504
43.6%
Total
124
5,70 5,701
Salzburg KPI´s
Salzburg is the second most important city destination
after Vienna and before Linz. It has nearly the same occupancy as Vienna and is only EUR 3.05 beneath the ADR of
the capital of Austria. Due to the Salzburg festivals and
the vacation time, August is the month with the strongest
demand. The fewest overnights took place in February.
These figures reaffirm the existing bed capacity in Salzburg's hotel market.
STR KPl´s 2013
100
80
60
40
20
0
Salzburg
Vienna
Linz
91.83
94.88
67.51
RevPAR (€)
64.2
67.19
47.88
Occ %
69.9
70.8
70.9
ADR (€)
Source: STR Global
Source: Horwath HTL
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Development of Overnights and Supply of the Hotel Market Salzburg
In general, the development of overnights has increased at a
higher pace than the bed supply, using 2010 as the base
year. The number of beds rose from 2010 to 2013 by 5.2%
from 10,818 to 11,409. In comparison, the number of overnights improved by 14.1% from 2.1 to 2.5 million overnights.
Having a closer look at the development of overnights in the
different hotel categories, the year 2013 wasn’t as good for
the hotel sector, except for the 3-star segment which recorded an increase in overnights by 12.7% up to almost
640,000. These figures can be interpreted in terms of the
significant development of beds within the segment that
took place over the past few years, and these mainly German branded hotel chains, like Motel One and Star Inn Hotels, managed to attract more city tourists to stay with them.
5-star hotels recorded a 5.1% decline down to 178,336
overnights; 4-star hotels decreased slightly by -0.6% but still
have with 1.2 million overnights the greatest share. The 2/1-star hotels dropped by -7.5% to 160,714 overnights.
When looking at the annual average growth from 2010
to 2013 the hotel sector developed very positively. The 3star hotel segment has reached the highest annual
growth rate with around 15.7% per year, followed by the
1-/2-star hotels with an annual average growth of 14.8%,
and 2.36% in the 4-star segment. The 5-star hotels had
the smallest annual average growth of 0.7%.
In 2014, 3- and 4-star hotels will have to focus on improving their positioning and customer retention to safeguard
against rate declines. Provided that adequate measures
are taken to boost the leisure segment and MICE sector.
We expect that the increasing room supply will be
matched by an increase in demand, especially in the
budget and 4-star segments.
Development of overnights according to hotel
categories
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
5-star
4-star
3-star
2-/1-star
174,897
1,163,381
435,041
111,195
2011
174,742
1,202,399
484,733
145,079
2012
187,885
1,252,712
568,027
173,607
2013
178,336
1,245,799
639,849
160,714
2010
CAGR of overnights according to hotel
categories form 2008 to 2013
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
CAGR
5-star
4-star
3-star
2-/1-star
-5.4%
4.4%
7.8%
10.5%
Source: Horwath HTL
www.horwathhtl.at
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Development beds/overnights
hotel market
130
125
120
115
110
105
100
95
2008
2009
2010
2011
2012
2013
beds
100
104.5
109.1
112.1
114.4
115.3
overnights
100
104.5
106.0
112.9
122.7
125.1
Source: Horwath HTL
"Since 2010 the number of overnight stays recorded
again strong growth."
Looking at the different hotel segments, almost all experienced a positive development of supply and demand.
5* hotels
100
95
90
85
80
75
70
"The bed offer of the 5-star segment stagnates at a
low level since 2010. The demand performs similar.
"
2008
2009
2010
2011
2012
2013
beds
100
98.9
72.9
72.9
72.9
73.1
overnights
100
98.9
74.5
74.4
80.0
75.9
Source: Horwath HTL
4* hotels
135
125
115
105
95
85
The comparison of the Index Development (2008=100) of
the supply and demand shows that in 2008 the demand
(overnights) and the supply (beds) increased slightly.
2009 overnights decreased by 1%, while at the same time
the number of beds increased continuously until 2013.
Since 2010 also the number of overnight stays recorded a
strong increase again. As of 2011, demand has been rising faster than supply so there is a still capacity for more
bed supply.
“In the 4-star hotel segment there is demand for additional beds since 2011.”
2008
2009
2010
2011
2012
2013
beds
100
105.0
120.6
115.5
115.8
115.0
overnights
100
105.0
115.6
119.5
124.5
123.8
Source: Horwath HTL
www.horwathhtl.at
The 5-star segment, however, shows an extreme drop
from 2008 to 2010 by 27 % and 28 %. Only in 2011 there
was a slight increase in demand (+7.5 %). However, it
sunk again in 2012. The supply stayed constant from
2010-2013. In the given period the supply and demand
decreased by 26.9 % and 24.1 %.
The 4-star hotels show a similar development from 2008
to 2009. In 2009, supply increased more than the
demand but in 2011, the development reversed. The
overnights increased disproportionately to the beds. The
bed supply remained constant.
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“The 3-star segment needs additional beds.”
3* hotels
150
140
130
120
110
100
90
"In the 3-star segment the overnights exceed the
bed offer disproportionately since 2011."
2008
2009
2010
2011
2012
2013
beds
100
105.5
102.5
111.8
120.9
125.3
overnights
100
105.5
99.0
110.3
129.3
145.6
Source: Horwath HTL
"Harmonization of supply and demand in the
2-/1-star hotel market since 2013. "
2-/1-* hotels
185
175
165
155
145
135
125
115
105
95
The development of the 3-star hotel market was quite
similar in the period 2008 to 2011. As of 2011, the
overnight stays, topped the beds disproportionately.
The development of the index of the 2-/1-star hotel
market shows that the supply had become stronger
relative to the demand from 2009 to 2011. Then the
trend reversed, as the demand was again above the value
of the supply. In 2013 the indices of beds and overnights
had almost the same value, and with this a balance of
supply and demand is shown.
2008
2009
2010
2011
2012
2013
beds
100
108.5
119.8
167.2
161.7
161.7
overnights
100
108.5
113.9
148.6
177.8
164.6
Source: Horwath HTL
The index development of the individual segments
shows, that the 5-star segment as well as the 2-/1-star
segment are saturated. There is no need for new
developments. In contrast, the segment 4-star and 3-star
still have capacity.
"Modernizations are urgently needed in many hotels."
A major hurdle of the hotels is that many products are no
longer appropriate and that modernization is urgently
needed. For a new hotel with good organizational
structure Salzburg is an attractive location.
©Foto Credit: Star Inn Hotel
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Horwath HTL Salzburg Hotel City Survey
The Horwath HTL Salzburg Hotel City Survey identifies the performance of individual 4-star hotels in Salzburg, and serves
to support and assess the regional hotel market.
This article is not available in this version. The extended version is available on order at Horwath HTL
Austria.
For the advanced version, write a message to office@horwathhtl.at or call at: 0662-832600.
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Hotel Rating Salzburg
According to the hotel ratings, the following five hotels are the
most popular and best appraising hotels in Salzburg
Hotel Rating Salzburg City
Date
Booking.com
Tripadvisor
trivago
Nr. 1
Hotel Schloss Mönchstein
Hotel Schloss Mönchstein
Hotel Sacher Salzburg
Nr. 2
Hotel-Pension Bloberger Hof Hotel Bristol Salzburg
Hotel Goldener Hirsch
Nr. 3
Hotel Sacher Salzburg
Hotel Himmelreich
Nr. 4
Hotel Bristol Salzburg
Hotel-Pension Bloberger Hof
Rosenvilla
Nr. 5
Hotel Rosenvilla
Hotel & Villa Auersperg
Source: Booking, Trivago, Tripadvisor,
©Foto Credit:: Österreich Werbung, Fotograf: Popp Hackner
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Hotel Transaction and Future Hotel Supply Salzburg
Some smaller transactions took place in 2013. Most prominent was the transaction of the Amedia Hotel and the Hotel
Neutor. The transactions in the city are certainly not as
spectacular as in Vienna. Mostly private investors are interested in having a hotel asset in Salzburg.
The Schloss Leopoldskron was reopened as a hotel under
the
new
name
"Hotel
Schloss
Leopoldskron".
It is a quality boutique hotel that combines the culture and
history of Salzburg with recovery and relaxation. The property has 55 noble renovated rooms as well as 12 spacious,
historical suites.
The former five-star hotel at the foot of the Gaisberg was
recently reopened by Peter Herzog as a breakfast hotel with
23 rooms with the name "Hotel Kobenzl".
Some rooms of the Crown Plaza Hotel are under renovation, totaling an investment of EUR 1.9million.
There are some prospective projects in Salzburg’s hotel
market to come. We expect some transactions of smaller
hotel portfolios as well as the development of hotels
around the main station and the exhibition centre.
©Foto Credit: Foto Community
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Vienna
Vienna Overview
With a population of 1.74 Million people, Vienna is the largest
city and Austria’s capital. Relative to its population, Vienna is
the seventh largest city in the European Union and the second
largest German-speaking city. Vienna proves to be an international city as it is the headquarters for many well-known international organizations and institutions. Because of its international, political importance, Vienna is one of the prominent
world cities. It is also the cultural, economic and political centre of Austria.
In 2001, the city centre was designated a UNESCO World
Heritage Site. Vienna is the global number 1 with the
highest quality of living and the most prosperous city in
the world according to “State of World’s Cities
2012/2013”. At the beginning of 2014 the unemployment rate was at 9.8% which is the highest rate in Austria.
The GDP per Capita registered was EUR 36,430 (2012).
©Foto Credit: Österreich Werbung, Popp Hackner
Vienna Airport Statistics
Vienna International Airport is the biggest airport in Austria
and one of the most important hubs for the growing number of destinations in Central and Eastern Europe. With
20,000 employees, Vienna Airport has the largest employment in the east of Austria. In 2012, 22.2 million passengers
were recorded and in 2013 the number decreased by 1.0%.
Passenger movements airport Vienna
(in million)
Vienna Airport was regularly serviced by 71 airlines in 2013,
which travelled to a total of 177 destinations in 69 countries. In 2013 Austrian Airlines Group had the largest share
of passengers with 49.15% followed by NIKI (11.0%),
Airberlin (6.1%), Lufthansa (5.5%), German Wings (2.7%),
Turkish Airlines (2.3%), British Airways (1.8%), SWISS
(1.7%), Emirates (1.6%) and KLM (1.3%). The average seat
occupancy rose from 73% in 2012 to 74.8%.
23
22
21
20
19
18
Passenger
2010
2011
2012
2013
19.9
21.1
22.2
21.9
Source: Vienna International Airport
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©Foto Credit: Hansueli Krapf
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Exhibitions, Congresses and Events Vienna
Vienna is a European congress and conference hub and the
leading city in Europe for international conventions. Since
2005, Vienna has been the world’s number one destination
for international congresses and conventions.
There were 3,389 corporate events and conventions in
2013. Of these there were 1,221 congresses, (+ 7%), 544
national (+24%) and 677 international (- 4%), and 2168
corporate events (conferences and Incentives) (-3%), 819
national (-18%) and 1,349 international (+9).
For the first time a record of over half a million visitors was
recorded at these events. As most of congresses only lasted
one day, overnights decreased by 8% towards 2012. The
average expenditures of the visiting participants were
around 483 Euros per head and overnight.
The congress and conference sector generated a value of
832.2 million Euros in 2013 (-9 %).
The biggest challenge is to assure the demand of the MICE
segment.
The main obstacles for the business will be to safeguard
demand. The following overview shows the most important congresses and conventions in 2014:
Congress Highlights Vienna 2014
Date
Congress
Expected visitors
5. – 8.2
Technologies&Treatments/Diabetes ATTD
6. – 10.3
European Congress of Radiology
3. – 4.4
Baukongress 2014
2,000
27.4. – 2.5
Europ. Geosciences Union – EGU
8,000
15. – 19.9
Europ. Association-Study of Diabetes – EASD
18,000
18. – 22.10
Europ. Gastroenterology Week - UEGW
14,000
3. – 6.12
EuroEcho-Imaging 2014
2,000
21,000
3,500
Source: Vienna Convention Bureau, Horwath HTL Research
©Fotocredit: 2014 Austria Center Vienna
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Arrivals and Overnights Vienna
Vienna is the most popular city destination in Austria according
to its generated overnights. In 2013, the number of overnight
stays went up to 12.7 million. In the European Tourism Ranking
Vienna is placed thirteenth. This corresponds to a CAGR of 5.7%
in the period 2011 to 2013. Arrivals increased to 5.84 million
with a CAGR of 5.8% since 2011.
“International arrivals account for more than three quarter
of the total arrivals.”
Our outlook for the near future is that the tourism figures will continue to grow at a similarly high level due
to the recovery of the economy in the EU.
“Vienna’s Tourism demand continues to develop
positively”
In the first half of 2014 Vienna recorded 2.75 million
arrivals and 6.01 million overnights. This represents an
increase of 5.7% and 5.8% in comparison to the same
period last year.
Arrivals and Overnights in Vienna
(in million)
14
12
10
8
6
4
2
0
2011
2012
2013
H1 2013
H1 2014
Arrivals
5.23
5.60
5.84
2.60
2.75
Overnights
11.41
12.26
12.72
5.67
6.01
Source: Vienna Tourist Board
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Source Markets Vienna
In 2013, Russia rendered the strongest increase with 12%
in regard to its overnights. This positive trend will probably
not be maintained by the current political situation. The
second highest rate of increase was in the USA with 6%.
The overnight stays from German and British guests increased by 5%. Austrian guests recorded an increase of
about 4%. Overnights from Italy and Spain fell by 5%.
South Korea is a new promising market. In 2013, South
Korea had the highest rate with 24%, followed by 16.6%
from Israel. The BRIC countries are considered promising
markets.
We expect the positive development of these trend markets
to continue in the near future though the pace of growth
could slightly change from market to market. In terms of
the European markets, the grow rates of the German market could see a slight decrease. It was observed that during
an economic growth period, the holiday destinations chosen by the Germans are further away than during economic downturn. The Dutch market still faces economic
problems and as a result so does the tourism supply and
demand of the market. It will be interesting to see what
happens with the CEE markets as these economies seem to
be developing better than expected.
In the first half of 2014 South Korea rendered the strongest
growth with 26.6% followed by China with +19.3%. Russia
in contrast is showing decreasing figure of -11.5%.
Vienna Source Markets Development Overnights (in ´000)
Country
Growth
2008 - 2013
H1 2014
YTD
708.65
+120%
-11.5%
198.28
208.47
+185
19.3%
82.04
99.89
124.28
+144%
26.6%
88.59
110.37
121.23
128.38
+138%
-1.5%
58.76
78.73
102.98
128.73
127.97
+107%
2.3%
59.58
64.22
68.74
69.18
99.46
115.92
+94%
18.9%
35.44
36.05
38.97
55.78
55.67
54.56
+53%
9.6%
2008
2009
2010
2011
2012
2013
Russia
321.14
283.81
383.94
521.54
634.40
China
72.97
84.25
107.50
142.09
South Korea
50.75
52.01
51.77
Serbian
53.87
Montenegro
58.00
Turkey
61.65
Israel
India
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Hotel Market Vienna
With ten new hotel openings in 2013, six in the 4-star market, Vienna offers about 60,000 beds in about 420 hotels.
The 4-star segment has a count of 15,424 rooms, representing half of the total room supply in Vienna.
In 2013, the Viennese hotel market consisted mostly of private hotels. 90% of the 1-/2- and 3 star hotels are managed
by private hoteliers. The 5-star hotel market is quite different with just under 60% being chain hotels.
Hotel Supply Vienna City 2013
Category
Number of Hotels
Number of Rooms
5-star
19
3,846
4-star
168
15,424
3-star
160
8,073
81
3,727
428
31,070
2-/1-star
Total
3-star hotels recorded an increase of 8% within the nominated period and a CAGR of 2.6%. The bed supply in 2-/1star hotels rose enormous; their hotel supply increased by
48.8% from 2010 to 2013 (14% CAGR). This category
represents the budget segment with its Motel One, Star
Inns, etc.
Chain hotels vs. private hotels
120%
100%
* The current closure of the Hotel Radisson Blu Palais for renovation purposes and the opening of Hotel Guest House Vienna is not considered in
the table underneath as well as pensions, guesthouses and B&B´s.
80%
9%
10%
91%
90%
41%
59%
chain hotels
60%
59%
privat hotels
40%
From 2010 to 2013 the 5-star hotel industry recorded an
average annual growth rate of 3.9% in beds; a total
growth of 12.3% since 2010. 4-star hotels show an increase in the development of beds of 18.8% in the same
period and a CAGR of 5.9%.
41%
20%
0%
1-/2-star
3-star
4-star
5-star
Source: Christies
New hotel projects from 2014 onwards
Hotel
Category
Rooms
Opening
Location
Meliá Vienna
5
253 rooms
Opend in February 2014
22th district
Hotel Park Hyatt
5
143 rooms
Motel One Wien Hauptbahnhof
2
530 rooms
End of 2014
Vienna
main station
Motel One Wien Staatsoper
2
400 rooms
2014
Vienna Opera
n.a.
135 rooms
2015
Vienna main station
Hotel Im Palais Schwarzenberg
5
64 rooms
2014
3th district
Hotel Four Seasons
5
165 rooms
2015 (?)
1st district
Budget-Designhotel
Cocoon Nomad
n.a.
186 rooms
Summer 2015
Mariahilfer Straße
120 rooms
2016
City park
Zukunftshotel Schani
Hotel Palais Wien
Opend in June 2014
Old Town
Tulip Inn
3
120 romms
January 2014
10th district
Wien Oberlaa
4
140 rooms
2015
10th district
Star Inn Hotel
Wien Mainstation
3
300
September 2014
10th district
Source: Vienna Tourist Board, Horwath HTL Research
www.horwathhtl.at
TM
Seite 29 von 40
Development of Overnights and Supply at the Viennese Hotel Market
The hotel market in Vienna continues to benefit from rising
tourist numbers. Since 2009 Vienna has managed to increase its overnights permanently. The CAGR in the 5-star
hotel segment was at 4%, 4.7% in the 4-star segment and
in the 3-star hotels at 1.7%. Hotels in the category 2-/1-star
developed the best with 9.3%.
In 2013 overnights in the 4-star hotel market increased by
5%. This corresponds to 5.9 million overnights. Thus, the
4-star category is the most popular hotel category. The 3star hotels recorded a rise of 2% up to 3.1 million. The
overnights at 5-star hotels grew by 1% to 1.4 million and
the taillight are the 2-/1-star hotels with 1.1 million overnights, yet with an increase of 3%.
Due to many new hotel buildings the bed supply will increase to approximately 5,000 beds in 2014 and 2015.
"Increasing arrivals and overnight stays, but declining OCC, ADR and RevPAR."
Despite increasing arrivals and overnights the performances of the hotels in 2013 doesn’t show the same picture. Occupancy sunk in 2013 by about 0.9 percentage
points to 70.8%. The RevPar performed similarly with a
decrease of EUR 3.50 to EUR 94.88 (-3.6%). Also the Average Room Rate sunk by EUR 3.38 to EUR 67.19 (-4.8%)
(see “Vienna KPI and outlook”).
“The 4-star hotel market dominates with
a share of 51.2% overnights.”
Development of overnights according
to hotel categories (in 1,000)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
5-star
4-star
3-star
2010
1,275
5,122
2,976
2-/1-star
778
2011
1,357
5,129
3,174
892
2012
1,429
5,637
3,089
1,053
2013
1,441
5,948
3,146
1,083
CAGR of overnights according to hotel
categories from 2008 to 2013
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
CAGR
5-star
4-star
3-star
2-/1-star
4.7%
3.2%
4.0%
9.0%
Source: Horwath HTL
www.horwathhtl.at
TM
Seite 30 von 40
The comparison of the index development (2008=100) of
the supply (beds) and demand (overnights) of the total
hotel market shows a similar growth until 2009. In 2009
the demand increased slightly more than the supply.
hotel market
130
125
120
115
110
105
100
95
"2013 - Turnaround in the Viennese hotel market the bed supply exceeds the demand."
2008
2009
2010
2011
2012
2013
beds
100
103.9
104.8
108.0
113.0
123.4
overnights
100
103.9
106.5
110.7
117.6
121.9
The trend reversed in 2013. The supply grew by 9.2% in
comparison to a demand increase of 3.7%.
Source: Horwath HTL
The number of beds supplied rose in the given period by
14%, from 51,342 to 59,873. In comparison, the number
of overnights improved by 13% from 10.1 to 11.6 million
overnights.
In general the market has experienced more demand than
supply in the previous years.
Since many new hotel projects are planned and hotel real
estate as an investment has increased enormously, the
supply will exceed the demand.
5* hotels
130
125
120
115
110
105
100
95
2008
2009
2010
2011
2012
2013
beds
100
106.2
108.2
114.4
113.7
121.5
overnights
100
106.2
111.1
118.2
124.5
125.5
"Rising demand in H1 2014 will outbalance the saturated bed supply."
Source: Horwath HTL
The figures of the first half in 2014 showing positive results in respect to arrivals and overnights. It can be
expected that the saturated bed supply will be
compensated by the increase in demand.
"Increasing pressure at five-star hotel market."
Developments beds/overnights
4* hotels
120
115
110
105
100
95
90
2008
2009
2010
2011
2012
2013
beds
100
98.7
98.3
97.5
105.5
116.9
overnights
100
98.7
100.7
100.9
110.9
117.0
Source: Horwath HTL
www.horwathhtl.at
From the year 2009, demand for the 5-star hotel market
outperformed the offering of beds. In 2013 the supply
increased again and almost reached the value of the demand.
Between 2012 and 2013 the supply of the 4- star and the
2-/1-star hotel market grew the same amount as the demand, therefore creating a balance in supply and demand.
TM
Seite 31 von 40
The picture of the 3-star hotel market looks different. From
2009 until 2012 supply and demand developed similarly.
As of 2012 the supply of beds has exceeded the demand.
This will attract greater competition and a market adjustment by itself.
3* hotels
130
125
120
115
110
105
100
95
"Supply and demand equalise in the 2-/1-star hotel
market."
2008
2009
2010
2011
2012
2013
beds
100
112.3
116.7
122.6
120.3
126.0
overnights
100
112.3
114.8
122.5
119.2
121.4
Source: Horwath HTL
During 2014 and 2015 many new hotels will be built and
the supply will continue to grow. But as the demand in
Vienna develops similarly to the supply, we can assume
that with an increase in supply the demand will also rise in
the coming years, although perhaps not to the same extent.
The index development of the individual segments shows,
that the 5 star hotel market has signs of saturation, as well
as 4 star market.
TM
The 3 star market has an overload in bed supply.
And as new hotel projects are already in development it is
likely that there will be tough competition within the hotel
market.
It will be crucial for hotels to have the best service and to
know how to sell their product using new communication
and booking channels.
2-/1-* hotels
160
150
140
130
120
110
100
90
2008
2009
2010
2011
2012
2013
beds
100
105.8
102.5
115.4
131.4
151.8
overnights
100
105.8
110.3
126.5
149.4
153.6
Source: Horwath HTL
www.horwathhtl.at
“The ones who are well advised will be better off.”
In particular, private hoteliers need to focus on marketing,
the quality of service supply and proper positioning, not
to perish in the market.
TM
Seite 32 von 40
Vienna KPI´s
Vienna belongs to the Top 10 European city destinations in
2013. London and Paris are still on the top of the city ranking.
The average room rate achieved a CAGR of 1.8% from 2010
to 2013. The CAGR of the occupancy rate is at -0.8% and
RevPAR has a CAGR of 1% from 2010 to 2013.
In 2013 according to STR Global the city achieved ADR of
EUR 94.88 (ranking 12th in Europe), occupancy of 70.8%
(ranking 9th in Europe) and RevPar of EUR 67.19 (ranking
14th in Europe). Despite average room rates, the city has
not improved its key performance indicators over the last
five years.
The market performance of the first half of 2014 has slightly
improved. Occupancy rate rose to 67.7%, an increase of
1.30% in comparison to the same period last year. An ADR
of EUR 94.16 corresponds to a decline of -0.39%. RevPAR
increased to EUR 63.71 (+0.90%).
“The outlook for 2014 foresees slight growth
for Vienna’s KPIs.”
The Horwath HTL development outlook for the upcoming
years foresees a slight growth of 1.5% of occupancy for the
year 2014. ADR and RevPar are estimated to increase by 2%
for the year 2014.
Overnights (measured on the population
in ´000)
Hamburg
Munich
11.6
13.0
Vienna
13.6
Prague
13.7
Madrid
14.9
Barcelona
16.5
Rom
24.2
Berlin
26.8
Paris
36.7
London
51
Source: measured by population in MODULE Research on behalf of ECM
Hotel KPIs Development Vienna
100.00
100 %
90.00
80.00
80 %
70.00
60.00
60 %
50.00
40.00
40 %
30.00
20.00
20 %
10.00
0.00
2010
2011
2012
2013
H1 2013
H1 2014
Average Room Rate (€)
90.00
94.67
98.38
94.88
94.55
94.16
RevPAR (€)
65.23
67.93
70.57
67.19
62.81
63.71
Room Occupancy (%)
72.50
71.80
71.70
70.80
66.40
67.70
0%
Source: STR Global
www.horwathhtl.at
TM
Seite 33 von 40
Occupancy vs. ARR Europäische Städte
90.0
Occupancy (%)
Compared with the rest of Europe, Vienna is regarded as
having KPI performance far behind other cities.
The graph below shows that although Vienna has a high
occupancy rate, the average room rate is very low. Only
Dublin and Berlin perform worse. Rome in comparison
has a lower occupancy rate, but a very high room rate.
85.0
London
80.0
Dulin
75.0
Berlin
Vienna Barcelona
70.0
Paris
Amsterdam
Zürich
Istanbul
Rome
65.0
Madrid
60.0
80
100
120
140
160
180
200
220
240
260
ARR (EUR)
Source: STR Global
According to HotStats data the KPIs for chain hotels in
Vienna indicate a similar performance, which is outlined
in the table to the left. No significant changes are observable although the losses from 2012 to 2013 are tremendous. Although the hotels suffered from a decrease
in Corporate and MICE business, the overall performance increased. However the archived rates fell. The different numbers of STR and HotStats in terms of KPIs are
driven by a variation in the participating hotels.
HotStats KPI Vienna Chain Hotels
Year
OCC
%
ADR
EUR
RevPar
EUR
TrevPar
EUR
Payroll GOP Par
%
EUR
2013
71.6
131.17
93.96
145.20
40.6
33.60
2012
71.2
142.46
101.43
154.91
39.1
40.40
2011
70.8
132.63
93.92
147.67
39.6
39.79
2010
71.8
126.97
91.12
145.09
39.4
38.88
2009
67.9
130.23
88.42
139.23
38.3
37.17
CAGR
1.3%
0.2%
1.5%
1.1%
1.5%
-2.5%
Source: HotStats Europe
Source: iStock
www.horwathhtl.at
TM
Seite 34 von 40
Vienna Luxury-Hotel Market
Austria.
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BUSINESS RECOVERY
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HORWATH HTL AUSTRIA
5020 Salzburg
Austria
Tel. 0043 (0) 662 83 26 00
Fax. 0043 (0) 662 83 08 83
TM
Seite 35 von 40
Room Revenues Vienna
The table below shows the room revenues (net) of all accommodation types in Vienna from the respective origin
markets.
“84% of revenues come from abroad."
Accordingly the German travelers generate 18.5%, and the
Austrians 16.3% of total revenues.
Since there was a change in the local tourist tax, the figures
from 2013 are not comparable with figures from 2012.
"4-star hotels generate the highest
total revenue 5-star hotels generate the highest revenue per overnight stay. "
A detailed analysis of the revenue of each individual segment shows that every overnight in the 5-star segment in
Vienna generated EUR 112.82 in 2013. The 4-star segment
achieved the highest total revenue of EUR 276.95 million
and revenues per overnight of EUR 46.56. The 3-star segment received revenues per overnight of EUR 32.45, the 2/1-star market realized revenues per overnight of
EUR 30.00.
Room revenues for all types of accommodation
in Vienna
Room revenues for each category per bed and overnight
in Vienna
(in ´000 EUR)
(in ´000 EUR)
2013
Revenue
Per bed
Per overnight
Total
608,895.62
5-star
162,570.20
22.40
112.82
From foreign
countries
509,883.53
4-star
276,947.20
9.40
46.56
3-star
102,076.99
6.30
32.45
2-/1-star
32,495.40
4.31
30.00
Main markets
Germany
112,339.43
Austria
99,012.09
Italy
26,181.69
USA
42,607.55
Russia
34,390.72
Great Britain
24,602.94
Source: Vienna Administration, Horwath HTL Research
Source: Vienna Administration, Horwath HTL Research
www.horwathhtl.at
TM
Seite 36 von 40
Hotel Rating Vienna
Nowadays, the online platforms booking.com, tripadvisor
and trivago are an important tool and play an essential
role, if not the most essential, in terms of ratings and customer reputation. Comments by other users are a big influencing factor. An average traveller looks at around 22 websites and comments before doing a booking. But with this
problems might occur. There is a high risk that through
false comments, also done by the hoteliers themselves,
consumer confidence is violated or even destroyed.
Hotels who maintain standards as per their web comments
will receive confidence. One should not delete negative
contributions as these will most likely appear in other
channels. Seriousness and honesty is required.
According to the hotel ratings, the following five hotels are
the most popular and most appraised hotels in Vienna. The
rating is considered to be an indicator of high importance
in terms of competitiveness, especially for privately owned
hotels.
Significantly, traditional and well-run hotels cite this ranking across platforms. This is also associated with the demand.
Hotel Rating Vienna City 2013
Booking.com
Tripadvisor
trivago
Nr. 1
Hotel Sacher Wien
Hotel Sacher Wien
Hotel Sacher Wien
Nr. 2
Das Tyrol
Hotel Hollmann Beletage
Palais Hansen
Kempinski Vienna
Nr. 3
Hotel Sans Souci Wien Das Tyrol
Nr. 4
Palais Hansen
Kempinski Vienna
Hotel Rathaus Wein & Design Hollmann Beletage
Nr. 5
Urbanauts
Hotel Sans Souci Wien
Das Tyrol
Hotel Sans Souci Wien
Source: Booking, Trivago, Tripadvisor
www.horwathhtl.at
TM
Seite 37 von 40
Horwath HTL Future Hotel Supply Vienna and Outlook 2014
Not only tourism demand is booming in Vienna. In 2014,
Vienna’s hotel market will experience a further increase in
capacity of about 990 new hotel rooms, predominantly in
the 5-star segment. The city will see an increase of 13.6% in
current hotel room supply or up to 33,300 rooms by 2015,
with the majority in the budget segment.
Vienna is the most popular city destination in Austria with a
CAGR of 5.7% from 2011 to 2013.
ADR and RevPAR figures still do not reflect its potential. In
the next two years, these numbers will only increase by
1.5% to 2% annually, while the occupancy is expected to
foresee moderate annual growth of 1%.
New hospitality products are entering the Viennese market.
(e.g. AirBnB). While in the past few years developments
mainly focused on luxury hotels, boutique hotels and the
budget segment, the upcoming hospitality product development trend is the so-called virtual hotel, like the recently
opened “The Guesthouse” in Vienna. The concept is simple: All guests enjoy the “at home” atmosphere in combination with the service quality of a hotel. The question remains as to whether demand will be in line with supply
and how the segments will be influenced by each other.
"Businesses with a unique positioning and an appealing service quality will be the winners."
We believe businesses with a unique positioning and an
appealing service quality will be the frontrunners. Other
companies that provide only a bed will lose. It is important
to position oneself with a good concept and to distinguish
oneself from the competition. Good consultancy will help to
recognize one’s potential and to apply it properly.
Source: WertInvest
Tourism in Vienna in 2014 looks promising. The first half
shows rising arrivals and overnights, also the most important source markets continue to develop positively, accept Russia. One hurdle could still be the new upcoming
supply. The development of the tourist numbers in connection to the bed supply will be crucial.
Currently the biggest Horwath HTL Austria project is the
project development of the restructure of the InterContinental hotel in Vienna with the Vienna Skating Club and
the “Musikvereinshaus” (picture: winning project by Isay
Weinfeld). The first luxury hotel, celebrating its 50th anniversary.
Horwath HTL is also in charge of Asset Management for
several owners of luxury Hotels in Austria´s capital.
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TM
Seite 38 von 40
Hotel Transactions
Viennas Hotel investment market in 2013 recorded several transactions. Buyers of these assets were mainly financiallysound funds and smaller real estate companies or developers with a great share from CEE countries.
The following list provides an overview of the most important transactions.
Austria.
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Tel. 0043 (0) 662 83 26 00
Fax. 0043 (0) 662 83 08 83
TM
Seite 39 von 40
THE CORE TEAM OF HORWATH HTL AUSTRIA CONSULTANTS:
PROF. STEPHAN GERHARD
GERALD KRÖLL, MA
MANAGING PARTNER
MANAGING DIRECTOR CONSULTING
E-Mail: office@horwathhtl.com
E-Mail: gkroell@horwathhtl.com
HANNES SCHIED, MA
LAURA GLASL, BSC
SENIOR CONSULTANT
JUNIOR CONSULTANT
E-Mail: hschied@horwathhtl.com
E-Mail: lglasl@horwathhtl.at
OUR CONSULTING SERVICES FOR YOUR
SUCCESS:
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PLANNING AND DEVELOPMENT OF HOTEL,
DESTINATIONS
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HORWATH HTL AUSTRIA
5020 Salzburg
Austria
Tel. 0043 (0) 662 83 26 00
Fax. 0043 (0) 662 83 08 83
TM

Hotel Market Study H1 2014 Vienna Austria Salzburg

Transcription

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