Time: 2024-06-29
Europe: Data recently released by serviced apartment agent SilverDoor indicates that the upcoming sporting events this summer are expected to have a positive impact on ADRs across the continent. Serviced apartment rates in Germany and Paris are projected to experience a significant increase as the UEFA EURO 2024 championship and Paris 2024 Olympic Games get underway. In Germany, ADR is forecasted to rise by 14 per cent year-over-year compared to June 2023. Berlin, which will be hosting several matches during the tournament, including the final, is anticipated to see a substantial increase of over a third to 167.85, representing a 34 per cent rise. Meanwhile, Dortmund, a city with minimal tourism prior to the tournament, is expected to witness a 23 per cent increase in ADR to 85.71.
As the Olympic Games are set to commence in Paris on 26 July, ADR in the city has also surged by 30-70 per cent compared to hotel room rates, which have spiked by as much as 200 per cent. In contrast, music events like Taylor Swift's Eras tour have not had a significant impact on ADR in the cities where she performs. For instance, during her visit to London, rates only increased by two per cent, which is eight per cent higher than the same dates in May but in line with the expected seasonal ADR upticks. Chris Lyon, the head of client services at SilverDoor, emphasized the importance of strategic planning, flexibility, and local knowledge when navigating business travel and MICE programmes during major events. Lyon advised individuals to plan ahead to secure the best rates and accommodation early, particularly when managing lodging for a large group.
Additionally, Lyon recommended negotiating group discounts and ensuring the best choice of accommodation, especially for those with specific requirements such as disabled access. Understanding cancellation and surcharge policies was also highlighted as crucial. Lyon suggested that negotiating surcharge waivers are more achievable for longer stays or clients with significant booking volumes in a particular destination. In cases where surcharge waivers are not feasible, all events-based surcharges are clearly outlined in quotes to help bookers make informed decisions and minimize costs by avoiding dates and destinations impacted by surcharges for recurring events. Lyon emphasized the importance of booking far ahead to efficiently manage any changes in plans without incurring additional costs that could impact budget and policy compliance.
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