inflation triggers tourist prices in mid-August

August is the tourist month par excellence and this year, after the pandemic, has been the most desired by the whole industry, which has arrived with very positive forecasts. So much so that many destinations have hung the “full” sign. But the joy of the sector contrasts with crazy prices What suffocate citizens in the so-called vacation of tranquility.

Specific, prices are 19% higher than in 2019, year before the pandemic. This means that the average price per night per person in Spain is now 49 euros, while in 2019 it was 41 euros, according to data provided by Destinia.

But if we look at the major hotel chains in the country, the increase in rates is greater than that mentioned above. For instance, the average daily rate or average room income (ADR) of NH Hotels was 131.5 euros on average in the second quarter of the year. If we compare it with the same period of the previous year, we are talking about 54 euros more.

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And this translated into an increase in revenue per available room (RevPar) of NH Hotels of 102.1 euros in the second quarter of this year compared to 26.6 euros in 2021.

In the case of Meliataking the first half of this year as a reference, the average rate was 137.54 euros (compared to 97.2 euros in the same period of the previous year). We are talking about 40 euros more than a year ago. Its RevPar was 76.72 euros until June 2022 (27.34 euros in the first half).

Plane tickets

As for the airlines, the situation is very similar. Plane tickets have become 45% more expensive in July compared to the same month of 2021 due to higher fuel prices, inflation and increased travel demand, according to data from Kiwi.com .

In August, tickets will increase by an additional 13% compared to the average recorded in July, while in September and October, at the end of the summer season, they will fall by 27.5%.

These increases have a protagonist: Ryanair. The low cost confirmed that it would increase its average rate by 20 euros, which is currently 37 euros. This means that on average an Irish banknote will cost around 60 euros.

A Ryanair plane at Alicante-Elche Miguel Hernández airport.

A Ryanair plane at Alicante-Elche Miguel Hernández airport.

To all this, we must add that citizens also bear inflation when they go shopping, dine in restaurants or pay their electricity bills. You just have to see that the Consumer Price Index (CPI) increased by six tenths of its annual rate, at 10.8%, its highest level since September 1984 due to rising prices for food and non-alcoholic beverages and electricity.

Despite this, domestic tourists travel through Spain. And internationally, international travelers are also arriving. Specific, in June there were 7.5 million who arrived in our countrya figure already very close to 8.8 million in 2019, the year before the Covid.

These tourists made a expenses in our country which reached 8,993 million euros. It is also close to pre-pandemic levels: in 2019, it obtained revenues of 9,696 million euros. The average expenditure per tourist amounts to 1,205 euros, with an annual increase of 10.3%. Here the figure is higher than that of 2019: 1,098 euros, according to data from the National Institute of Statistics (INE).

Price adjustment?

However, for some, the high prices in the tourism sector will not last beyond the summer. For Ricardo Fernández, CEO of Destinia, there will be an adjustment at the end of the year.

“With the rise in rates, it seems that the bag of savings that consumers had is coming to an end and that at some point it has to be adjusted because the consumer is not going to support being sold 19% more expensive “, he points. out. In the end, the objective is to maintain active demand after the summer in the middle of the low season (except in the Canary Islands).

In fact, at the beginning of July the president of the Spanish Confederation of Hoteliers and Tourist Accommodation (Cehat), Jorge Marichal, acknowledged the uncertainty after the summer due to the “threatening macroeconomic environment” which could complicate the latter part of the year.

On the other hand, it looks like the flights will keep going up in price. Willie Walsh, CEO of the International Air Transport Association (IATA)warned tourists that flying “will be more expensive” because “the high price of oil will mean higher bills”.

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