Tourism is accelerating toward a record year as global demand returns alongside steady domestic travel. Prices in the sector have risen after the inflation-driven upswing, and the revival is pushing the industry back toward historical levels of activity.
The hotel sector, after a two-year pause caused by the pandemic, is seeing a sustained rate increase as consumer demand remains robust despite the pressures of war, inflation, and higher borrowing costs. With expectations of continued price growth through the high season, many believe the coming months will set new records for hotel rates during the peak summer period.
In the latest report from the National Institute of Statistics, hoteliers raised average nightly rates by 11 percent in March, achieving an average income of 99.32 euros per occupied room. This follows a nearly 35 percent rise in the same month a year earlier. Last year’s average was 89.05 euros, with a pre-pandemic level of 80.92 euros in 2019, illustrating a strong rebound in room pricing.
By category, five-star properties led the surge with a 14 percent increase last month, pushing average nightly rates to around 231 euros. Four-star hotels rose by 9 percent to 102 euros, while three-star options posted increases slightly above 13 percent, up to 76 euros.
Heading for the most expensive summer?
Demand during the peak summer months remains concentrated in the hotels with the broadest occupancy, and records from INE suggest that nightly prices in Spain typically peak in July and August, with July around 121 euros, August near 128 euros, and September dipping toward 107 euros.
Industry forecasts indicate that demand will not slow in the coming months. Instead, consumption could continue rising through the summer, lifting prices further unless unforeseen economic or financial shocks disrupt the trend, with a potential to reach new highs.
Another important metric is revenue per available room, or RevPAR, which helps measure both price levels and occupancy. In March, Spanish hotels reported RevPAR above 62 euros, up nearly 24 percent from the previous year and surpassing pre-pandemic 2019 levels by about 23 percent.
Prices and costs
Tourism companies are reporting stronger turnover as activity rebounds and prices rise in line with inflation. The sector as a whole, including hotels and related services, increased prices by an average of 7.7 percent in the first quarter. Looking ahead, operators expect the wider interest-rate environment to normalize gradually through the year, with annual price gains projected in the 3 to 4 percent range.
Industry voices emphasize that the ability to raise prices reflects healthy activity, with a lobby representing about thirty major companies in the sector noting a positive outlook for rate adjustments. Key players in the ecosystem include major hotel brands and travel firms that contribute to higher-quality offerings and value-added services, supporting higher price ranges and addressing the debt accumulated during the pandemic.
The price increases respond to rising costs driven by inflation, the push to market higher-quality products, and the need to meet group demand with sustainable pricing. Yet, despite growing sales and higher prices, profitability remains challenging for many operators due to sharp increases in operating costs tied to inflation and energy pressures. In this context, rate adjustments must cover roughly a fifth of the rise in costs.
Industry estimates show energy costs for tourism companies rising in the first quarter of the year, along with other supplies and wages, while INE data confirms an average sector-wide price rise around 7.7 percent. The combination of stronger demand and higher costs continues to shape pricing and profitability across the sector.