Prague Hospitality Report
Shared accommodation platforms versus hotels in five European cities
The number of tourists is growing faster than the number of hotel bedplaces; an average of 300,000 additional tourists visit Prague every year. New bed capacities are increasing only slightly, their number has increased by only 1.4 percent over the last two years. On the other hand, the capacity offered via accommodation platforms (e.g. Airbnb or HomeAway) increased by 34.1% over the same period. The accommodation platforms take advantage of the new trend, while the cities fail to profit. This follows from Deloitte's study Prague Hospitality Report.
The number of available units in Prague offered via shared accommodation platforms increased from 10,310 in 2016 to almost 14,000 in 2018. Last year, the estimated amount of lost income from local fees for the city of Prague ranged from CZK 88.5 to 124 million. Due to planned changes in fees, the amount is expected to increase to more than CZK 250 million.
“The prospect of interesting earnings via short-term accommodation platforms pushes residents out of the city centre. We expect this effect to continue to the wider city centre. Recent forecasts show that by 2025, more than 330,000 additional tourists will come to Prague year-on-year,” says Miroslav Linhart, Partner and Head of the Real Estate department at Deloitte.
“Unfortunately, the growth in tourism and the popularity of shared platforms have negative effects on the city or parts of it, as well as on the local property market. In addition, legislation and local administration react slowly to all this. The response could be not only the possible regulation of shared accommodation, but also a new offer from hotels, which would increase market flexibility,” adds Petr Hána, Senior Manager of the Real Estate department at Deloitte.
In addition to Prague, the study also focused on Amsterdam, Barcelona, Budapest and Vienna. Check out the complete results in the Prague Hospitality Report.