After a two-year hiatus due to Covid and its fighting restrictions, Tourism is finally picking up pace and seeking a full recovery in the first summer of post-pandemic normalization– at least for now – despite the economic uncertainty stemming from Russia’s military invasion of Ukraine.
The tourism sector expects a high summer season, with demand increasing rapidly and pre-pandemic business levels are assumed to be exceeded. At the temperature of reactivation, Spanish hotels manage to raise their prices amid the boom in demand from both domestic and foreign tourists, while also forcing the cost increase caused by increased tourism. inflation.
hotel businesses In May, it increased its prices by 24.5% compared to the same month of the previous year, According to the latest data published by the National Institute of Statistics (INE), until you reach an average income of 95.3 euros per night for each room. The industry is already easily exceeding the prices it offered before the pandemic: the average revenue per room and night in May 2019 is 82.64 euros, 15% below the current level.
An important indicator for measuring real business development and profitability in the tourism industry is revenue per room available (RevPar), which is used to measure both prices and occupancy. Spanish hotels raise their RevPar to 60.90 euros in Maythat they achieved more than last year’s records (+131%) and exceeded the 2019 pre-pandemic level by 11%.
In line with this, the hotel price index (a type of CPI prepared by INE for the accommodation sector) shows an increase of 22.1%, which is 22 points lower than May of last year and 7 points lower than May of last year. last month.
burst of demand
in May, hotels added a total of 29.8 million overnight stays, While still 7% below pre-pandemic levels (32 million overnight stays in May 2019), they multiplied last year’s data by four. The hotel industry has so far managed to increase overnight stays almost five times compared to the first five months of last year.
Last year, the tourism revival was supported by an increase in demand from Spanish customers, but the recovery in demand from international tourists now serves to consolidate the recovery. Spanish tourists spent a total of 9.9 million overnights last month, more than double that of a year ago. Overnight stays by international travelers rose eightfold to 19.8 million compared to the same month last year.
price and costs
Large companies in the tourism sector warn that the increase in activity will be accompanied by a large asymmetry in financial results, because the increase in demand, the blow of cost overruns will not translate into an improvement in profitability for all companies. It was caused by inflation out of control (up to 8.7% in May) and some companies having trouble transferring them to rates quickly.
“Airlines and hotels with a strong brand” are expected from the lobby Exceltur, which brings together the thirty largest tourist groups in the country (including Meliá, NH, Iberia, Globalia, Riu or Amadeus). manages to avoid intermediation and sell directly to the consumer”, but others take the brunt of the increase in costs by not being able to transfer them fully. According to Exceltur’s last quarterly report, on average, companies in the industry will be able to pass on to consumers only a quarter of their operating cost overruns, that is, 26.3% of the total.
Source: Informacion
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