Still highly affected by the disruption experienced during the COVID 19 pandemic, the hotel industry is set to face new challenges and see new trends emerging in the upcoming period:
- The surging inflation and the disruptions in supply chains and the ongoing war in Ukraine will lead to higher operational costs;
- Labour shortages will put further pressure on hotel owners. According to INS, there were 223,600 employees in the hospitality industry in January of 2020. It is estimated that this number dropped to 163,000 at the beginning of 2022;
- With demand for leisure growing faster than demand for business travel, hotels located in the main business hubs will witness a longer recovery period;
- Constrained by increasing costs outrunning the slow recovery of the market, some hotel owners will choose to reconvert their assets;
- The relaxation of pandemic-related restrictions has led to a resurgence in demand for hotel-located social events. Additionally, concerts and festivals have given a much needed boost to the hospitality market: over 1 million people will have attended the five largest festivals in Romania by the end of August 2022;
- The pandemic has provided an opportunity for some hotel owners to refurbish and modernize their properties without the pressure of losing an otherwise safe income.
Download the attached report for full information.