Hotel industry in Europe - statistics & facts

From the glamourous coastline of the French Riviera to the brutal beauty of the Norwegian fjords, travelers can be found in all corners of Europe. With a wide variety cultures and landscapes on offer, tourism in Europe is unsurprisingly a booming industry. However, some tourism segments generate more revenue than others. In 2023, the revenue of the hotel market in Europe reached 111 billion U.S. dollars, making up the second largest share of revenue in the tourism industry, after package holidays. These days, due to the competitiveness of the European hotel market many companies are distinguishing themselves by incorporating future facing initiatives like sustainability and artificial intelligence (AI).

What are the most popular hotel destinations in Europe?

Given that Southern/Mediterranean Europe was the region with the highest number of international tourist arrivals worldwide, it would be easy to assume it was also the European region with the highest hotel revenue. However, this accolade actually went to Central & Western Europe in 2023 with a revenue of over 68 billion U.S. dollars. That said, many of the European cities with the highest hotel occupancy rates were located in Southern/Mediterranean Europe - Barcelona leading the ranking with an occupancy rate of 71.5 percent. Contrastingly, the majority of the European cities with the highest hotel average daily rates (ADRs) were located in Central & Western Europe. Showing that these regions are not necessarily receiving more hotel guests, but that they are more expensive on average than their sun-soaked counterparts.

Digitalization of the European hotel industry

While much of Europe’s charm is based on its history, its hotel industry has had to embrace modernity to survive. One thing that has significantly changed is consumer booking methods, with many consumers these days looking to book trips online. Not only have hotels developed their own websites, they have also partnered with third-party booking platforms like the most-visited travel and tourism website worldwide, Booking.com. While there is a love hate relationship between the two, as third-party websites take a cut of a hotel’s profits, they are undeniably a lucrative way to draw in new customers. Meanwhile, a Statista survey on the use of artificial intelligence in the European accommodation market, showed that as many as 20 percent of accommodation businesses in Germany and Austria had already implemented AI in their businesses. With this focus on innovation, the Europe hotel industry looks to grow for many years to come.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Apr 10, 2024

Key insights

Revenue of the hotel market in Europe
111bn USD
European region with the highest share of hotel revenue
Central & Western Europe
European city with the highest hotel occupancy rate
Barcelona
Get more insights

Editor’s Picks Current statistics on this topic

Real per capita consumer spending on restaurants and hotels in Europe from 2014 to 2029 (in U.S. dollars)

Accommodation

Real per capita consumer spending on restaurants and hotels in Europe 2014-2029

Sales distribution of the hotel market in Europe from 2017 to 2023, with a forecast until 2028, by channel

Hotels

Share of hotel market sales in Europe 2017-2028, by channel

Level of preparedness for digital transformation of accommodation businesses in Europe as of May 2023, by country

Accommodation

Preparedness for digital transformation in lodging in Europe 2023, by country

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Further reportsGet the best reports to understand your industry

Hotel industry worldwide
Hotel industry worldwide
Travel and tourism in Europe
Travel and tourism in Europe
Hotel industry in the United Kingdom
Hotel industry in the United Kingdom
Food and drink services in Europe
Food and drink services in Europe
Hotel industry in Italy
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Hotel industry in Europe
Hotel industry in Europe
Hotel market in Central and Eastern Europe
Hotel market in Central and Eastern Europe
Hotels in Sweden
Hotels in Sweden
Hotel industry in Spain
Hotel industry in Spain
Hotel industry in France
Hotel industry in France

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