International Motor Show (IAA) 2017
International Motor Show (IAA) in Reverse Gear
In the run-up to the International Motor Show (IAA), many people have wondered whether and to what extent the diesel emissions scandal and the legally enforced possibility of an inner-city driving ban on certain diesel vehicles will influence the IAA. Even if the automobile is considered as Germany’s “favorite child”, this is without doubt hardly to remain. The autoanalyst Jürgen Pieper of Bankhaus Metzler also sees a decline demand for the first time after eight years of steadily rising demand in the car industry.
The question, therefore, is how great would the impact be on the attractiveness of the IAA? Will the visitor numbers suffer to such an extent that that there are also consequences for the hotel sector and that the corresponding performance indicators occupancy, average room rate and RevPar turn negative compared to the previous year?
The answer is more of a no. Indeed, the analysis of the hotel key figures for the event period of the IAA shows the following picture: In comparison to 2015, occupancy rate increased by 0.5% in 2017, but the rate level of 2015 (ADR -2.4%) was no longer reached and the RevPar also had to drop to -2.4%. However, there is no comparison to the effects of the economic crisis of 2008 on the IAA 2009 – at that time, the occupancy fell by more than a quarter.
The detailed analysis by hotel category also shows that the development is quite different. Five-star hotels achieved an increase in RevPar by 6.1%, which is considerable under the circumstances. The pre-fair day/arrival day (€ 244 RevPar) and the first day of the fair (€ 196 RevPar) were the strongest days from the perspective of the hotel industry in Frankfurt.
Overall, it should be noted however that the IAA has seen a significant decline in the number of visitors. The year 2015 received 932,000 visitors and this 2017 counted “only” 810,000 visitors up to the last day of the exhibition on Sunday at 3 pm. This is a significant decrease of 13.1%.