A survey of top executives has revealed a dramatic rise in confidence in the European hospitality industry in 2011, with 67% of respondents describing their 12-month outlook for the industry as bullish, according to a survey by DLA Piper. This marks a significant increase from 2010, when 27% said they were upbeat on prospects.
A survey of top executives has revealed a dramatic rise in confidence in the European hospitality industry in 2011, with 67% of respondents describing their 12-month outlook for the industry as bullish, according to a survey by DLA Piper. This marks a significant increase from 2010, when 27% said they were upbeat on prospects.
The results provide an interesting indication of how the market is adapting to the post-credit crunch economy, DLA Piper said. About 24% of those with a bullish attitude attributed this to the improved operating performance of hotels, with 18% noting the opportunities associated with the current economic climate. The results also suggest that joint ventures (74% of respondents believe these will increase), and the investment opportunities offered by the economy and midmarket sectors (highlighted by 70% of respondents) will be key opportunities in the coming year.
Looking ahead, 31% of respondents believe that 2012 will prove to be a vital 'turning point', as the sector benefits from an increasingly globalised market and a recovery led largely by an increase in business travel.
'These findings are broadly in line with trends that we have seen emerging in the hospitality sector over the past year,' said Karen Friebe, partner and head of Hospitality & Leisure, EMEA. 'The market has changed and organisations have had to deal with that - whether by reassessing their approach to investments and joint ventures, or by taking a look at their operations and making the necessary changes to streamline the business.'
