Italian Hotel Market
By Zoran Bačić on September 3 2020
Italy: Hotel Market Sentiment Survey
Horwath HTL Italy conducted this survey in collaboration with the Italian Hotel Association to evaluate the current and medium-term impacts of Covid-19 on the Italian hospitality industry. In general, it is commonly expected a heavy drop of performances in the first semester of 2020 compared to 2019, with more than 49% of respondents expecting a decrease of more than 80% of Total Revenues.
Only 5% of the respondents (mainly seasonal operators) expect the effects to disappear by September, while 46% of respondents foresee the return to ‘operating normality’ only by 2021.
To support the recovery, the Italian Hotel Industry demands a governmental back up with urgent and incisive measures such as the cutting of regional and state taxes, the reduction of labour costs, improvement of the flexibility of the labour market.
- The overall sentiment on post-Covid recovery is generally negative
- In the first five months of 2020 the hotel overnight stays decreased of -63% compared to the same period in 2019
- Only 16% of surveyed hotels were fully operational, with over 60% of respondents expecting a drop in Occupancy Rates and Total Revenues higher than 70% in the first semester of 2020
- The demand segments expected first to reach, or exceed, the pre-Covid-19 levels are the Leisure segments, both FIT and Groups, mainly driven by domestic travellers
- Besides setting new hygiene standards & procedures, about a third of the hotels favoured measures such as restructuring organizational structure, the renegotiation of contracts with suppliers, and investments in digital marketing, with only few respondents postponing planned investments.