Revinate, Colliers International and Fairmas launched today the first edition of a comprehensive report on guest satisfaction metrics and overall performance of the German hotel market. The research was based on a combined analysis of guest reviews, ADRs and occupancy rates for 4,800 properties across Germany between 2013 and 2016.
2016, a strong year for German hotels
Overall occupancy rates during the first eight months of 2016 were very similar to those during the same period of the previous year. German 4-star properties experienced a slight 0.7% percent increase, while 3-star and 5-star hotels dipped by 1.2% and 1.6% respectively. ADRs fared batter and registered increases across all major cities except for Dresden, Hannover and Köln.
The average occupancy rate for German hotels during the period was set at 70.2 percent, a 1.6 percent increase over the first eight months of 2015. The highest rates were scored by Hamburg (79.1), Berlin (76.4), and Munich (75.1), while Köln (68), Hannover (61.9), and Dresden (60.4) had the least occupied properties on average.
Niels Schröder, CEO at Fairmas, celebrated “the steady growth of the German hotel industry over the past years,” and how in 2016 “it is set to experience a new increase, albeit at a low level.” According to Schröder, “this evolution has a lot to do with the security concerns around traditionally strong inbound markets such as Turkey and Egypt, and the fact that 2016 will be a good exhibition year.”
Guest feedback reveals strong satisfaction rates
The research also calculated the average guest feedback scores for all major German cities based on the unprecedented analysis of over 2 million reviews on properties spread across Berlin, Dresden, Düsseldorf, Frankfurt, Hamburg, Hannover, Köln, Leipzig, Munich, Nuremberg and Stuttgart. Those average scores were remarkably stable, with seven cities scoring 4.1 points over 5. Only Berlin, Dresden and Nuremberg registered slightly better averages of 4.2. Meanwhile, Köln properties received the worst ratings, but still averaged a 4-point score.
The number of reviews per property varied significantly across cities, with Berlin leading the ranking with 906.4 guest comments per hotel, followed by Dresden (826.6), Hamburg (820), and Munich (700.7). The three cities with the lowest ratio of guest feedback per property were Nuremberg (499.1), Stuttgart (483.6), and Hannover (355.9).
After consolidating all of this valuable data, Germany’s average review score was set at a remarkable 4.1 points, and the country’s hotels received on average 430.3 reviews during the first eight months of 2016.
Thomas Landen, Senior Marketing Manager for EMEA at Revinate, highlighted the rise of Chinese travelers in Germany, and how their guest feedback was “overwhelmingly positive about their hotel experiences, with more than 72 percent of their reviews being positive.” Landen also highlighted that “according to the China National Tourism Administration, Germany is already the fourth most popular destination outside of Asia,” and forecasted that the figure will double by 2025.
Booking.com and Tripadvisor stay at the top among review sites
While the percentage of reviews in platforms such as Holidaycheck, HRS and Hotels.com decreased significantly over the last three years, Tripadvisor’s share remained flat –moving from 11 to 13 percent between 2013 and 2016. Booking.com kept concentrating the highest number of reviews and increased its market share by 48.8 percent, representing 61 percent of all the reviews on German properties.
However, the review site with the highest response rate in 2016 is Tripadvisor, with over 57 percent of its comments on German hotels being replied. The popular review site was followed by Revinate Surveys, HolidayCheck, Average and HRS as the guest feedback platforms with the highest engagement rates.
According to Dirk Bakker, Head of EMEA Hotels at Colliers International, the combined results of hotel performance and guest reviews confirm the strong position of German hotels in the European market: “we see a tremendous increase in online guest reviews and the booking behavior of guests is changing. Hotels clearly know how to react to this changing environment as their performance indicators continue to increase and show record-high results”.