The average nightly rate for a hotel room in the Pitiusas region reached an all time high in July, topping every other tourist destination in Spain at 229.75 euros. Statistics from the National Institute of Statistics (INE) show only one other Spanish destination exceeding 200 euros per night, Guipuzkoa beach at 210 euros.
Market forces drive prices, according to Manuel Sendino, head of the Hotel Federation Ibiza and Formentera (Fehif). He notes that some properties will adjust downward while others hold firm, and there is no uniform pricing behavior across the market. He also cautions that the data reflects averages, and large hotels may push prices higher, skewing the statistics, while smaller accommodations may show a more modest rise.
When the nuance is considered, prices in the Pitiusas sit well above the rest of the Balearic Islands. On Majorca, the average overnight rate in July stands at 145 euros, while Minorca sits around 166 euros. Overall, the Autonomous Community of the Balearics ranked as Spain’s most expensive region for July travel, with an average of 192 euros per night.
If the Balearics are ranked by city, Mallorca municipalities show higher nightly rates than the Pitiusas, particularly along the Andalusian coast where the Costa del Sol averages 170 euros. In that area, Marbella averages 283 euros per night and Estepona reaches 298 euros, making them among the most expensive in the country.
12% increase
Sendino points out that vacation lodging prices are generally rising across Spain due to inflation, which does not help lower prices either. INE data reveal that this price uptick is more pronounced in the Pitiusas than in other Balearic Islands. While Mallorca and Minorca cost about 6% more than last July, Ibiza and Formentera experienced a markedly higher rise, over 12%. A year earlier, a room averaged 205 euros in the Pitiusas.
But the surge in Pitiusas prices was not the largest nationwide. Andalusia again tops the list, with the Costa Tropical (Granada) climbing from 106 euros to 136 euros in a single year, a 27% increase. La Palma also stands out with a 23 percent price rise after a drop the previous year following the Tajogaite volcano eruption in 2021.
Cost effectiveness
Price is only one side of the coin; profitability matters too. INE provides data on revenue per available room (RevPAR), calculated as hotel revenue divided by total available rooms. In the Pitiusas, RevPAR averages 205 euros, about 25 euros below the average price.
Across the Balearic Islands, the gap between average price and profitability remains similar despite lower prices overall. In Mallorca, RevPAR declined 11% to 129 euros, 16 euros below the average rate. In Menorca, RevPAR was 148 euros, which is 18 euros less than the average price, or about 10.8% below.
The Gipuzkoa region presents the smallest gap among the regions, with RevPAR about 5% below the average price, sitting at 193 euros per night.