Hotels on the coast raise their average price by 42% in August to 168 euros per night | companies

The average daily rate for hotels in Spain will be 168 euros in August, 42% more than in other periods of high occupancy in coastal destinations and 17% taking into account urban centers, according to the report The outlook for hotel prices Simon-Kucher & Partners, a global strategy and marketing consulting firm.

Following this trend, the most affordable average fares in coastal destinations such as the Balearic Islands or Malaga will exceed 200 euros in August, while among the cheapest coastal destinations are the Costa Brava, the Canary Islands and Alicante, with rates between 120 and 165 euros. .

The first unrestricted post-pandemic tourist summer has arrived with skyrocketing inflation and hotels with prices not remembered many years ago. The demand accumulated in previous years exceeds that of 2019, causing prices to rise due to the avalanche of reservation requests.

According to the report by Simon-Kucher & Partners, the median daily rate will rise to 168 euros in August, reaching 200 euros in places like the Balearic Islands or Malaga, where many of their hotels have displayed the “full” sign.

The document ensures that hoteliers are “making a killing” by making the most of the willingness to pay of a consumer who is more eager than ever to travel.

In its quarterly price perception panel, it indicates that the consumer perceives that prices are rising up to 20% more than reality in travel, which will limit consumption as soon as the effect of the demand accumulated after the Covid will have disappeared.”

For this reason, all experts believe that this contained demand effect will stabilize at the end of 2022 and that consumers will reduce their travel and leisure spending in 2023.

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As for the positioning of the hotel industry, both upscale and mid-range hotels grew by 17% on par with previous periods of strong demand, taking advantage of the exceptional situation.

The easing of restrictions against Covid attracts foreign tourism to Spain and in turn favors domestic tourism which had restricted their travels after the pandemic.

The sector is starting to aim for 2023, which will be marked by an unprecedented macroeconomic backdrop, with high inflation and high interest rates indicating that pent-up demand could be a mirage this season.

In addition, the text underlines that the economic uncertainty with the invasion of Ukraine by Russia and the possible energy blockades this winter with inflation already soaring upset the most optimistic forecasts.

The consultant’s experts assure that demand will undoubtedly be affected by stagflation (a combination of slowing growth and sharp price increases), an unknown challenge that the hotel sector will have to face.

“Riding this wave and protecting margins will go beyond tactical rate hikes: it will require smart business strategies such as identifying the least impacted customers and ensuring a consistent distribution strategy, among other levers” , concludes the report.

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