Hotel businesses can be affected by many circumstances beyond their control.


From natural disasters to terrorist activity, you never know what might result in a sudden decrease, or even an increase in booking and occupancy.

How did your hotel perform in 2016? What are your results pointing to? Were there any unforeseen circumstances that affected revenue, or was your business even keeled? What do you have to look forward to in 2017?

Another great question to ask would be, “what would we do if worst-case scenarios presented themselves?” Although not fun to consider, thinking about the question may provide valuable insights into what you can do should unexpected and unwanted difficulties arise.

If you were to experience a temporary decrease in bookings, what other monetization methods could you employ and rely upon? If bookings suddenly sped up, what could you do to keep up with increasing demand and ensure customer satisfaction?

Whether it’s Brussels, Rome, or Munich, this has been an interesting year in the hotel business for several cities. Some were affected negatively, and others positively.

What about you? What challenges did 2016 present? What opportunities did it bring? How does your hotel stack up among others?

European Chain Hotels Market Review

Per Hospitality Net, here are some of the notable trends:

    • In Brussels, hotels have experienced a 56.9% year-on-year profit drop from September, which has led to a 57.3% decline for year-to-date 2016. This is due to the terrorist activity that transpired in March. Hotels in Brussels have recorded a year-on-year decline in Revenue per Available Room (RevPAR) of 26.5%. Occupancy levels have dropped to 57.2%, with a low of 47% in August.


  • Hotels in Munich have enjoyed a profit per room at €128.08, or more than 117% above the year-to-date figure, €58.93. RevPAR peaked at €191.83, 62.1% above year-to-date average. These results were attained as result of a packed event calendar at Messe München.
  • Thanks to the Extraordinary Jubilee of Mercy, Rome hoteliers have seen a 5.3% increase in RevPAR, a 15.7% increase in profit per room. This is not a dramatic year-on-year increase, but still formidable.



What can you learn from the above? What stats surprised you the most? Did you already know how the hospitality industry was being affected in these cities, or was this your first time learning about it?

A basic observation we can make about the above is that terrorist activity can cause a lot of fear, leading to a decrease in travel, bookings and profit. Meanwhile, events that attract travelers could lead to a small or large boost in business.

Here are some other questions that may be of value to you as you consider what you can learn from Brussels, Munich, and Rome:

  • Do you have a backup plan should revenue streams not perform as expected?
  • Are you watching the news and relevant industry trends so you know what’s coming next? What about technology and your competitors?
  • If bookings were to increase dramatically at your hotel, are you prepared to handle the sudden influx of customers?
  • Whether you feel you made forward progress this year or not, do you know what you could do to improve next year? What lessons did you learn in 2016? What will you change moving forward?


Final Thoughts

As a business, there are things you can control, and those you cannot. Knowing that difference can help you avoid unneeded frustration. The key is to be adaptive, to figure out what you can do to cope in difficult situations.

Observing how other businesses respond in challenging circumstances can also be of immense value. When you see how they’re dealing with difficulties, you can gather important clues as to how you might respond given similar circumstances.