With the EU’s ban and the U.K.’s mandatory quarantine on
American travelers, many of Europe’s hospitality players are bracing for the
impact on hotel occupancy levels.
“The American is typically a great traveler for Europe,
especially in July, August and September,” said Kike Sarasola, founder and
president of Spain-based Room Mate Hotels. “So, for us, this is a big, big
problem. We’re very worried.”
The lion’s share of Room Mate’s 28-property portfolio is
scattered across Europe, including in markets such as Madrid, Barcelona, Paris,
Florence, Rome, Milan and Amsterdam.
According to Jonathan Raggett, managing director of the Red
Carnation Hotel Collection, the U.K. government’s decision to require U.S.
travelers to self-isolate for 14 days has put a major damper on the company’s
outlook for its six London hotels. Red Carnation has resumed operations at only
one of its London properties, the Rubens at the Palace.
“The U.S. is the most important market for us,” Raggett
said. “We decided to open just one hotel in London, and we’re not even running
double-digit occupancy there. Normally, in July, all of our London properties,
which total around 600 rooms, would be running in excess of 90%.”
Meanwhile, the EU’s outright ban on U.S. travelers is
similarly weighing heavy on Red Carnation’s Ashford Castle in County Mayo,
Ireland. Raggett reports that the historical property, which typically draws
the majority of its bookings from the U.S., is currently running occupancies
below 50%, versus its typical level in the 90% range.
Another Irish castle hotel, Dromoland Castle in County
Clare, is similarly reliant on what general manager Mark Nolan calls “the very
valued American guest,” which traditionally accounts for the bulk of the
With a wave of U.S. travelers unlikely to arrive anytime
soon, however, Dromoland Castle has linked with Ashford Castle to offer joint
promotions designed to encourage domestic travelers to visit the two
“Native Irish [are] our second-biggest source market,” Nolan
said. “The See All of Ireland From Its Two Legendary Castles campaign has
allowed both properties, Ashford and Dromoland, to work together, allowing a
lot more penetration in the market in a cost-efficient way.”
Likewise, Red Carnation’s Raggett hopes that the creation of
“air bridges,” or travel corridors that allow for unrestricted movement between
two or more countries, will boost regional travel throughout Europe.
“Air bridges could help stimulate things a bit,” Raggett
said. “For example, [travelers from] France, Spain and Italy can come and stay
in the U.K. without having to self-quarantine, and vice versa. We’re certainly
not forgetting the U.S. market, but we have to focus on where we can find
Raggett added that the U.K. also benefits from a relatively
solid domestic travel market, though British travelers are currently showing a
preference for nonurban properties. Red Carnation’s 25-room Summer Lodge
Country House Hotel & Spa in Dorset, for example, is experiencing
record-high occupancies, Raggett said.
To help boost the local appeal of the company’s London
hotels, however, Red Carnation plans to offer guests perks such as
complimentary upgrades and afternoon tea as well as bolster marketing
communications to highlight new cleanliness measures. Those measures include
the recent deployment of Act CleanCoat, a transparent surface coating from
Danish company ACT.Global that purportedly decomposes viruses and other microbes on contact.
Luxury hospitality group La Reserve Hotels -- which has properties in Paris and Ramatuelle,
France; Geneva; and Zurich -- was quick to craft domestic travel-focused
packages as its hotels began reopening in early May. Popular offers included a
Dreams & Delights deal, which invited locals to pair a staycation at a La
Reserve hotel with a chef-prepared, in-room meal for two, as well as a promotion
for a day visit to La Reserve a la Plage beach club at La Reserve Ramatuelle.
Additionally, Nathaniel Most, director of sales and
marketing for La Reserve, said the group’s Paris hotel -- where American clientele usually accounts for
over 60% of business -- has seen an unexpected surge in last-minute
business this summer.
“[We’re seeing] lots of walk-in guests in Paris,” Most said.
“We’ve never experienced that level of same-day arrivals.”
According to Room Mate Hotels’ Sarasola, Spanish markets
such as Madrid, San Sebastian and Malaga are also seeing relatively healthy
occupancies, even sans an American contingent. Instead, travelers from the
U.K., as well as France, Italy and Germany, are helping to pick up the slack.
“Occupancies are going up quite quickly in certain markets,”
Sarasola said. “We’ve reopened two hotels in Madrid, and we’re already at a 50%
occupancy there, which is very, very good. San Sebastian is at around 40% and
Malaga is at 45%, so it’s going well. We’re optimistic.”
Room Mate is seeing similarly encouraging performance in
cities such as Florence and Paris, though Sarasola acknowledged the turnaround
in Milan and Rome has been notably slower, with the cities likely to be further
hindered by a continued lack of U.S. tourists.
“We should have solutions that ban people, not entire
countries,” Sarasola added. “Instead, we should adopt massive testing efforts
when travelers get on airplanes, when they land and when they get to a hotel. I’m
against banning all Americans when there are other solutions.”