Less than a month ago the Hospitality Market Snapshot Italy 2024 was published by PWC, and, like every year, we believe it is essential to stop, reflect and observe the objective data in order to understand what changes our country is going through and what trends can be identified for the coming year.
Here are some interesting highlights that emerge from this analysis:
Economic investments: what is the current situation?
In Italy in 2024, in the first six months of the year considered alone, investments in the hospitality sector amounted to EUR 950 million, distributed quite evenly, with a notable concentration in Rome, Sicily, Sardinia and other locations historically considered as secondary such as Bologna and Turin.
What caught our attention is not only this investment data, which, as PWC reports, appears to be growing, especially from the end of 2022 to date. In detail, what appears relevant is that in 2024, the hospitality sector accounted for as much as 30% of commercial real estate investments, thus becoming a very relevant asset.
Tourism performance: what stands out?
Keeping in the economic sphere, we can see that a trend of the past years (especially since the beginning of 2023) was further consolidated during 2024. Indeed, average daily rates (ADR) and revenue per available room (RevPAR) have shown impressive growth, with increases of up to 52% compared to 2019.
On the one hand, this number translates into positive aspects:
- A higher ROI, as it means that hotels are potentially generating more revenue per available room
- A possible market attractiveness, as a growing RevPAR may also indicate a higher tourism demand, making the Italian market more attractive to possible investors and new players in the sector.
On the other hand, we can also identify some negative aspects. For example:
- Price increase: a higher RevPAR could result from an increase in room rates, making stays more expensive for tourists and potentially reducing accessibility for people on a tight budget
- Service quality: an excessive focus on increasing RevPAR could lead to a reduction in service quality if hotels seek to maximise revenue at the expense of the customer experience
2025: here are some tips
Based on these data and considerations, we would like to give you a clear message: numbers are important to understand the reality of the industry, but the way you do what you do is worth much more.
For this reason, we share with you below some tips for your 2025:
- Set your priorities: if the priority of your professional role is to increase the profitability of your guests’ stay, remember that numbers are not everything and not everything revolves around numbers. Taking care of every single detail of your guests’ experience, working hard with your team to strive for excellence through high quality service, and genuinely caring about your guest’s needs will ensure that the results (in terms of profitability) will most likely be greater than expected
- Be conscious: being aware that investments in hospitality are increasing, especially for the luxury sector is crucial because this leads inevitably to situations often linked to increased competition in the market. Remember that being aware of this means having a solid basis for action and developing an effective operational strategy to continue to offer the best to your guests and welcome new market segments
- Follow your passion: the data we have presented to you are important and represent a useful tool to take a precise, accurate and objective look at the current overview in Italy. Our advice is to continue making business choices guided by passion, not just by market data. Certainly, they represent a strategic basis for further reflection, but at the same time, acting with passion can often determine the success or failure of an idea or business project.
Set your priorities carefully, act consciously by always following your passion and leading those around you with your heart.
Martina Dalla Vedova
Marketing Manager Hospite S.r.l.