Tourism is accelerating towards a record year. The revival in the tourism sector is moving towards historical levels due to the increase in demand from foreign tourists as well as domestic tourists and the price increases that the sector started as an inflationary wave.
This Hotels Spaniards accumulate two-year increase in rates after a pause due to the pandemic amid a consumer boom unaffected by the economic impact of war, the blow to inflation, or the uncertainty and fears that exist due to rising interest rates. After two years of hikes, the industry assumes that increases will continue in the coming years due to the historical demand expected in the high season and will reach record rates in the summer.
organizations hoteliers increased their prices by 11% in March According to the latest data published by the National Institute of Statistics (INE), they achieve an average income of 99.32 euros per night for each room occupied, compared to the same month last year (when they already applied an increase of almost 35%). . While the average rate was 89.05 euros in the same month of last year, it was 80.92 euros before the pandemic in 2019.
By category, five-star hotels increased their prices by 14% last month, even before the Easter celebrations, to an average of 231 euros per room per night; those with four stars increased them by 9% to 102 euros; and three of them increased them by more than 13%; up to 76 euros.
Heading for the most expensive summer?
in the months high summer season with the highest prices concentrated In hotel businesses where the general demand is the highest in Spain. According to INE records, average nightly prices in the hotel sector in the summer of last year were 121 euros in July, about 128 euros in August and 107 euros in September).
Forecasts used in the hotel industry do not foresee that demand will slow down in the coming months, and that consumption will continue to increase in the summer season and prices will increase if unexpected economic or financial shocks do not occur. until it reaches record levels.
In parallel with this, an important indicator to measure the real development and profitability of the business in the tourism sector, revenue per vacant room (RevPar), accumulating, which serves to calibrate both prices and occupancy, while also rising month-to-month for two consecutive years. Spanish hotels increased their RevPar to over 62 euros in March, increasing last year’s figure by almost 24% and surpassing the 2019 pre-pandemic level by 23%.
Prices and costs
Tourism companies are confirming significant increases in their turnover, thanks to the revival in activity as well as the rise in prices amid a wave of inflation. While the tourism sector, which includes not only hotels but all branches of activity, increased its prices by an average of 7.7% in the first quarter of the year, the sector anticipates that the interest rate review will be reorganized until the end of the year. The whole year, in increments of 3% to 4%.
“Fortunately, companies can raise prices,” sums up Vice President José Luis Zoreda. excellent tourlobby that brings together about thirty of the largest companies in the industry (eg. Meliá, NH, Iberia, Globalia, Iberostar or Amadeus). The business community sees the increase in rates as a sign of the good progress of activities in the sector.
for the industry lobby price increase It responds to the increasing costs due to inflation, the marketing of higher quality and value-added products by repositioning them in higher ranges, and the need to meet the needs of the groups for the payment of the debt accumulated during the pandemic process. .
Although demand continues to grow despite improved sales and higher prices, Exceltur warns that this boom has not translated into increased profitability for many companies due to the sharp rise in operating costs caused by rising inflation. Collaboration is only transfer your rates with 20% an increase in costs.
According to industry lobby estimations, energy costs incurred by tourism companies are still 17.4% in the first quarter of 2023, while the cost of other supplies is 14.3% and wage costs made this 7.8%. Meanwhile, according to INE data, the average price increase in the sector was 7.7 percent.