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Edinburgh, Glasgow and Manchester set up for hotel market recovery once travel activity resumes

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Edinburgh, Glasgow and Manchester are amongst the key European cities well positioned for recovery once travel restrictions start to ease following the Covid-19 outbreak, according new research.

The new data, based on the latest analysis of major European hotel markets by global real estate advisor, CBRE, analyses future demand expectations across each major travel segment to identify which cities are likely to be most impacted.

Markets with material exposure to leisure demand and a lower reliance on both international travel (particularly long-haul) and Meetings, Incentives, Conferences and Exhibition (MICE) demand are best positioned for a more rapid recovery.

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Domestic travel will be the first to see a return of activity, according to the research.

This will be predominantly supported by the gradual reopening of economic markets alongside the lifting of some travel restrictions.

In 2019, 63% of tourism spend across Europe was from the domestic travel market, highlighting its importance in the sector.

International travel demand will take longer to return, with short-haul recovering before long-haul. CBRE’s findings suggest that as a result of this, accommodation providers in gateway cities and airport locations will be most exposed to the limited volume of international travel demand.

Leisure travel is likely to see an immediate surge in demand, particularly staycations. Countryside and rural hotels across Europe are expected to benefit from this trend first, as travellers will initially seek to avoid densely populated locations.

Joe Stather, associate director, Hotels, CBRE said: “Previous demand shocks in the hotel market show us that not all customer segments are impacted to the same degree, or indeed follow the same trajectory in terms of recovery. We anticipate that markets across Europe which have previously benefitted from strong domestic leisure demand are well positioned to lead the recovery cycle.”

Tags : CBRE HotelscoronavirusEdiinburghGlasgowManchestertourismtrends
Zoe Monk

The author Zoe Monk

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