Italy: Europe’s trending travel destination

How Italy’s hotel sector is thriving in bookings and room rates and how online trends set up a summer to remember for Italian hoteliers

While many key marketers in Europe can rely on consistently strong demand from June through August this year, the top-line revenue metrics are where Italy’s true success becomes evident though.

Key takeaways

• The country recorded an average daily rate (ADR) of EUR271.84 in June and EUR263.89 in July, which was in stark contrast with Italy’s neighbors to the west, as Spain secured rates of EUR156.24 and EUR168.64;
• Digging deeper, rate is the driving force behind positive revenue performance in Italy’s luxury class properties. Revenue managers at high-end properties were able to command ADRs of EUR978.65 in June and EUR1,031.85 in July, representing respective uplifts of 26.6% and 22.8% from the previous year;
• This summer, the U.S. has been responsible for delivering some of the largest numbers of arrivals to Italian hotels;
• According to STR, demand will grow next year, but rates will “reset” and decline modestly as the dollar depreciates, U.S. slows economically, inflation moderates across Europe, and normalized demand growth slows pricing power.

Get the full story at STR