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What Impact is EURO 2012 Having on Hotels in Poland and Ukraine?

Search ASIA Travel Tips .com Send to Friend ASIA Travel Latest Travel News Thursday, 28 June 2012

There is always a lot of interest and debate in how hotels react to massive global events such as the Rugby World Cup, Olympics, and of course Euro 2012 currently ongoing in Poland and Ukraine.

 Data compiled by STR Global, shows that looking back over the last two weeks from hotels across six cities, whilst benefiting from the influx of visitors on the night of a game, still had rooms available throughout the championship period.

"With just days before the final, the hotels can already look back at an overall successful championship," said Elizabeth Randall, managing director at STR Global. "The tournament has been followed by more than four million supporters in the fan-zones, stadiums and even more fans watching on TV. And with most fans commenting on the friendly welcome they received, the promotion of the destinations will be invaluable to the markets. One negative aspect for hoteliers might be the amount of unsold rooms as football fans picked up fewer rooms than expected and as existing business was displaced."

During the first match in Warsaw on 8 June when Poland played Greece, hotel RevPAR increased by 325.9% to 198.79 compared to the previous year. The RevPAR growth was mainly the result of ADR growth, while occupancy reached 86.0%.

 During the next two games, RevPAR increased by 143.9% and 425.1%, respectively, when occupancy peaked at 96.9% Tuesday, 12 June and 90.2% Saturday, 16 June.

 On the night before the quarterfinal between the Czech Republic and Portugal, occupancy on Thursday, 14 June reached 90.8%.

In Wroclaw, occupancy was higher than 92% during the three matches, and hoteliers benefited from the strong RevPAR growth on both 8 June and 16 June.

Interestingly, during the mid-week game between the Czech Republic and Greece on 12 June, ADR growth only increased by 146.2%. This is the lowest ADR growth across all the Polish cities surveyed on a game night. This low growth can be explained by the proximity of Wroclaw from the Czech border-a little more than an hour away-which saw many fans coming on a day trip from the neighbouring country.

RevPAR growth started on a high note during the kick-off match in Poznan, with RevPAR increasing to 178.70 (+871.8%). RevPAR growth was led by ADR growth (+222.7%) and occupancy (+201.1%). However, during the subsequent tournament nights, RevPAR growth remained lower as occupancy reached 91.6% (+14.3%) on 14 June when Italy faced Croatia, and during the last match played in Poznan on 18 June-Italy versus Ireland-occupancy reached 97.4% (+57.7%) and ADR increased by 186.5% to 210.17.

The three cities in Poland, Gdansk, Gdynia and Sopot, achieved the highest ADR across all the Polish cities during the tournament, with ADR reaching 225.61 (+199.3%). The city also managed to keep ADR level close to 220 during the games played there: ADR reached 219.94 (+169.9%) on 14 June, 222.46 (+176.5%) on 18 June and 240.43 (+219.9%) on 22 June.

Although Krakow didn't host any matches, the city has been able to benefit from the tournament. Hotel ADR increased by more than 55% since the start of the EURO 2012. Krakow has been hosting national teams and their delegations that chose the city as their base camps. Further, its close proximity to Wroclaw and Warsaw makes Krakow an easy overnight destination for fans on their way to Lviv, Ukraine.

In Kiev, where STR Global currently tracks six Luxury and Upper Upscale hotels, hoteliers faced more challenges during the Euro 2012, experiencing a decline in occupancy throughout the tournament, except the night prior to a game.

The negative publicity surrounding the political situation and largely unfounded travel concerns seems to have contributed to a large number of unsold rooms.

 For hoteliers, however, the increase in ADR during the championship has helped support month-to-date RevPAR growth, increasing by 29.8% Sunday, 24 June. This was followed by strong occupancy during Saturday, 23 June and Sunday night on 24 June, when Italy beat England in the Quarter Finals.

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