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Prague Hospitality Report Tourism, Hotels & P2P Accommodation

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Prague Hospitality Report Tourism, Hotels & P2P Accommodation Prague Hospitality Report Tourism, Hotels & P2P accommodation November 2019 Prague Hospitality Report | November 2019 Prague Hospitality Report | November 2019 Content Intro 04 Report findings 05 Demand on the hospitality market 06 – Tourism as a trend Supply on the hospitality market 12 – P2P and hotel capacity Residential market and P2P accommodation 23 – Effect of shared accommodation platforms on the residential market Annex Hotel market in Prague in European comparison 31 P2P accommodation market in Prague 38 in European comparison P2P accommodation regulation 46 02 03 Prague Hospitality Report | November 2019 Prague Hospitality Report | November 2019 Intro Report findings 1 4 6 Demand on the hospitality market Through research it has been We would like to present you with our For a complex view, Prague has been Prague and Budapest P2P in Prague is rising while determined, that hotel segment publication PRAGUE HOSPITALITY REPORT included in a European comparison with the accommodation markets capacity growth and their focused on the hospitality market in cities selected by their similarities and inflow of tourists into Prague is indicate the most signs of diversity (location, rates, services) Prague with the goal of providing a closer characteristics regarding the topic of this increasing by an average of est. shifting from the sharing Difference just offer greater supply flexibility understanding of the current status of publication. The main cities used as 300,000 per year. economy to commercial between 2016 and 2018 is more with more than 80% of and therefore limit further tourism, hospitality accommodation, its a comparison to Prague are Amsterdam, business than 838,000 tourists yearly arrivals listings being entire homes in both growth of P2P accommodation. impacts and its prospective direction. Barcelona, Budapest and Vienna. to Prague. cities, 49% of listing being available for more than 180 days per year In this report hotels and peer-to-peer This report provides an overview and 66% of listings being operated accommodation ("P2P") platforms and comparison of hotel and shared by hosts having multiple listings. 7 are considered as the main facilities accommodation markets in the above 2 In case of non-existent of the tourist hospitality market. P2P mentioned cities. Data used in this study Hospitality supply reacts response by hotel supply (both accommodation is represented by portals comes mainly from the Deloitte internal to touristic boom by a P2P new supply and occupancy of Airbnb.com, Booking.com, HomeAway. database, Eurostat, CZSO.cz and other accommodation capacity growth) new demand in com and other local alternatives from the national statistical offices, Euromonitor increase, where the number of 5 2025 would be covered by an AirDNA database. P2P data are primarily International, AirDNA and Inside Airbnb. total listings has risen by 34.1% in Potential fee leakage for Prague est. 4,533 additional average used from AirDNA.co database which the last 2 years reaching 14,000 from accommodated tourists in P2P accommodation units includes data from the Airbnb.com and listings in total. Hotel bedplaces P2P accommodation was estimated located mostly in the city centre Homeaway.com portals. capacity only increased by 1.4 % to range from CZK 88.5 million to and wider city centre as the in the same period of time. CZK 124 million in 2018. Potential most demanded localities by leakage is expected to increase tourists. 4,533 apartments are to more than CZK 250 million est. 80% of total apartment stock of 3 with prospective changes of Staré Město. Sharp escalation of shared accommodation fees effective accommodation has caused in 2020. unbalance in city centre residential housing. The number of available units grew from 10,310 available units in 2016 to 13,824 available units in 2018 (34%). P2P accommodation's economic profitability pushes residents out of the city centre. We expect this effect to continue and extend even to the wider city centre with a further increase in the tourists’ numbers. 04 05 Prague Hospitality Report ||November November 20192019 Prague Hospitality Report | November 2019 Demand on the hospitality market European tourism is at a crossroad The number of tourists has been increasing policies and strategies will be key to finding rapidly for the last decade which creates the right balance in tourism development in an unprecedented new demand on the upcoming years, mainly for cities with rising market that is transforming not only the signs of overtourism – Prague is undeniably hospitality sector but whole cities. New city one of them. Tourism as a worldwide trend 220 200 180 160 140 120 100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total international overnight arrivals expenditure Total international overnight arrivals World Real GDP Source: Mastercard Global Destination Cities Index 2019 12 000 000 10 500 000 9 000 000 7 500 000 06 06 07 6 000 000 4 500 000 3 000 000 1 500 000 0 ienna Rome Praue Milan udapest arcelona Amsterdam** 200 000 15 180 000 125 160 000 140 000 50 120 000 163 1 100 000 80 000 60 000 40 000 20 000 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 Praue arcelona Amsterdam ienna udapest 100 90 2 36 33 3 37 80 3 363 3 3 06 52 507 7 555 70 55 60 50 40 72 66 662 637 65 61 626 601 30 616 5 5 522 3 1 5 20 10 0 2016 2016 2017 2018 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 Praue arcelona Amsterdam ienna udapest 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Praue arcelona Amsterdam ienna udapest 9 8 7 6 5 4 3 2 1 0 2013 2014 2015 2016 2017 2018 H1 2019 100 000 5 90 000 80 000 35 70 000 3 60 000 50 000 40 000 30 000 20 000 10 000 0 Praue arcelona Amsterdam ienna udapest 250 200 150 100 50 0 Praue arcelona Amsterdam ienna udapest Praue arcelona Amsterdam ienna udapest 0 3 6 9 12 15 4% 4% 12 0 60 50 40 30 20 10 0 Praue 1 Praue 2 Praue 3 Praue 4 Praue 5 Praue 6 Praue 7 Praue 8 Praue 9 180 160 140 120 100 80 60 40 20 0 Praue arcelona Amsterdam ienna udapest 100 90 3 35 3 80 55 70 60 7 50 40 66 65 66 30 5 20 10 21 0 Praue arcelona Amsterdam ienna udapest 25 000 26 20 000 31 15 000 50 0 10 000 5 000 0 Praue arcelona Amsterdam ienna udapest 120 000 51 100 000 80 000 6 6 60 000 33 0 40 000 20 000 0 Praue arcelona Amsterdam ienna udapest Praue arcelona Amsterdam ienna udapest 0 10 20 30 40 50 60 70 Praue arcelona Amsterdam 10 15 20 Prague Hospitality Report |November 2019 Prague Hospitality Report | November 2019 220 Long-term economic upswing affordability but also by a much higher travelling 200Significant increase of the number of 2018 from observed cities after Amsterdam an additional 330,000 arrivals a year until and the rise in the travelling trend itself frequency than before. Leisure travelling tourists in Prague with 1,568,000 growth in the last 2 years, 2025. are the main drivers of higher volumes was for decades provided by professional while Amsterdam’s high numbers are 180 of leisure travelling. According to the travel agencies that is currently disrupted The trend of the tourism increase is mostly impacted by the characteristic of In the long term perspective the number of MasterCard Global Destination Index, in mostly due to the influence of technology confirmed in Euromonitor arrivals statistics the city as a popular airport transition tourists has been, on average, increasing the time of an increase of world real GDP and connectivity. The smartphone is an 160– each of the selected monitored cities point. Prague and Rome lead in terms of by an est. 300,000 every year (and it does of 140.3% the total amount of international essential travel assistant and together with has recorded an increase of international absolute numbers of international arrivals not seem to be slowing down) for the last overnights arrivals from 2009 to 2018 internet connectivity serves as a tool arrivals in the last 2 years with an overall exceeding 9 million arrivals per year. But in decade while the amount is, of course, ascended by 176%, while overall tourism to enable to travel alone without any 140average increase of significant 9.5% of all relative comparison Prague has more than not equally spread over the whole year, expenditures increased by even 197%. professional agency and without any presented cities. two times less population, which is why it but in the most touristically frequented The popularity of the whole trend of knowledge of an unknown destination. reaches a significantly higher density ratio time periods - the summer months and 120 travelling is not just caused by more In Prague long term perspective tourists of arrivals compared to locals. This ratio Christmas season, which then further people who can and are willing to travel inflow grows by est. 300,000 per year. The of international arrivals to locals is 6.9% increase consequent impacts. Prague’s 100number of international tourist arrivals has in Prague, which is more than two times reputation as a leisure destination has increased by 606,000 between years 2016 higher than in Vienna or even three times gained in popularity and still has a very 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 and 2017.
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