According to analysis from global hotel industry firm STR, from May 2019 to May 2020, average room rates increased by 23% in Italy, 21% in Ireland, 17% in Spain and 12% in the UK. Average daily rates on one booking system increased by 40% in the second quarter compared to the same period in 2019.
These figures are expected to rise further in 2023. In July, the annual inflation rate in the eurozone was 8.9%, driven by soaring energy prices. For a group of seven European countries, electricity prices rose from €86/mWh in July 2021 to €324/mWh a year later.
Hotel prices in Europe to rise sharply by 2023. Photo: Sarajevo
Some industry experts predict hotel prices in Greece and Croatia will rise by 25% in 2023. Tour operators with contracts with hotels in Türkiye for 2023 are facing increases of between 20% and nearly 50%, with prices quoted in euros, not Turkish lira.
However, with rising prices predicted, demand for European travel shows no signs of slowing down. If Europe is on the list for 2023, travelers should book now for hotels that don’t require a deposit and offer short-term cancellations with no extra fees.
Private apartment rental costs may increase more slowly than hotel rates, but booking in advance at this time is also recommended.
