The price of Spanish hotels on the coast jumps 42% in August, up to 168 euros

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

Following this trend, the most affordable mid-range rates in coastal destinations such as the Balearic Islands or Malaga will exceed 200 euros in Augustwhile among the cheapest coastal destinations are the Costa Brava, the Canary Islands and Alicante, with prices between 120 and 165 euros.

The first unrestricted post-pandemic tourist summer has arrived with soaring inflation and hotels with prices that could not be 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 Simon-Kucher & Partners report, the average daily rate will be 168 euros in Augustreaching 200 euros in places like the Balearic Islands or Malaga, which have hung the “full” sign in several of their hotels.

The document assures that the hoteliers “make a killing” by pressing as much as possible the will to pay the a consumer more eager to travel than ever.

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

For this reason, all experts believe that this demand containment effect stabilize at the end of 2022 and for the consumer to reduce their spending on travel and leisure in 2023.

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Regarding the positioning of hotels, the top of the range and the mid-range are growing by 17% at the same time compared to previous periods of strong demand, taking advantage of the exceptional situation.

The reduced Covid restrictions it attracts foreign tourism to Spain and in turn promotes domestic tourism which had restricted their travel after the pandemic.

The sector is starting to set its sights on a year 2023 which will be marked by an unprecedented macroeconomic contextwith high inflation and high interest rates indicating pent-up demand could be a mirage this season.

In addition, the text indicates that the economic uncertainty with the invasion of Ukraine by Russia and the possible energy blockade this winter with inflation already triggered undermine the most optimistic forecasts.

The consultant’s experts ensure that demand will certainly be affected by stagflation (a combination of slower growth and steep price increases), an unrecognized challenge that the hotel sector will have to face.

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

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