Czech hoteliers began their worst season during the last ten years. In particular, Prague accommodation service providers are faced with a large fall of foreign tourists and experiencing a decline of business and leisure tourism. Revenues in the conversion of one room per year fell by 20 to 35 percent, rooms remain empty especially in Prague hotels. The Czech capital has seen the largest decline in comparison to major European Union cities except Budapest, this contributes to the fact that Prague has more rooms than Vienna.
The clientèle of Prague hotels used to be mainly Germans, British, Irish, Dutch, Japanese, Americans, Spanish and Brazilians. “In the past, British tourists were the main clients in Prague. It was for the last three years their largest destination, today Brits travel more to the Baltic countries.
Hotels in Prague that were occupied at 80 to 90 percent during the main season and the year-round occupancy of around 75 percent, are now at 50 to 55 percent.
On the other hand, it is necessary to say that Russian clientèle partially replaced the English. The crisis in the mean time contributed to the fact that overpriced Czech hotels fell under the price level of other similar European destinations.
Due to the crisis and other factors, such as the Mexican flu, the composition of clientèle has changed. More Czechs have decided to spend their holidays in the Czech Republic and so they occupied Czech hotels.
Occupancy fell by around 18 percent, prices fell 10 to 11 percent. This gives an overall drop of about 28 per cent compared with last year.
Prague is experiencing the hardest fall by far, this is due to fierce competition and large capacity the capital city. “Five years ago, a world investment company announced that Prague is a suitable destination for foreign companies intending to invest in the hotel industry.
Not only expensive hotels are menaced by the crisis, but almost all hotel groups. Five-star hotels with their prices decreased by thirty percent, they are now taking the clients of the four star hotels and consequently those must respond immediately, so the situation pushes down and down.
In other Czech regions the situation is not really that bad, these declines are not too high because in those cities there are not that many hotels and or strong competition, also Czech clientèle uses their services, the number of Czechs rose by more than 10 percent which is at least one relatively positive phenomenon. Also the use of the Internet while booking rooms or apartments in Prague increased, particularly for so-called last-minute offers.
Prague needs to be like Vienna. Prague is even more beautiful than Vienna, but needs to focus more on culture and interesting events that would attract tourists.
