This Easter is shaping up busy for Spain’s hotel sector, with clear projections for the year ahead. Despite recent inflation, the early holiday season shows solid demand. In the hospitality market, coastal hotels report occupancy around 80% while inland properties hover near 65%, according to industry figures. Campsites are nearing full capacity, with reservations reaching about 95%. This occupancy level is roughly 22% higher than last year and about 12% above the pre-pandemic 2019 figures, signaling a strong rebound in post-pandemic tourism as the sector moves beyond three years of epidemic-related limits.
Already, about half of Spain’s capacity seems tied up for the next three months, according to data presented in the spring Smart Observatory report compiled by PwC. The analysis notes that growth will be robust this quarter as domestic businesses recover from the pandemic and international visitors regain momentum. With the expansion of urban commerce as well, cities like Madrid and Barcelona, along with peninsular resorts and secondary towns, are experiencing stronger demand patterns.
Among international markets, the rebound is notable for the United States given improved air links, along with renewed interest from Asia following China’s reopening. This recovery benefits major urban hubs such as Madrid and Barcelona. British travelers, along with visitors from France, Italy, and Portugal, are also showing renewed confidence. Germany appears to be lagging somewhat behind the broader recovery trend.
Higher prices
The optimism is tempered by another reality: average room rates have risen by about 7%, a level expected to persist in the near term due to sustained demand and ongoing inflation. Market demand remains strong, and there are few signs that prices will drop soon, according to industry leaders. The outlook for the sector remains positive, supported by generous advance bookings and a reduction in cancellations. Yet price dynamics vary by destination: some urban centers have seen stronger increases through direct channels, which account for roughly 30% of hotel distribution. In Madrid and Barcelona, price growth has run higher, while more coastal and island destinations have reported varying trends. Tourism activity in the Canaries and Andalusia has shown notable price elevations around 20%, whereas some markets have experienced softer pricing signals.
Across the board, hoteliers are betting on a sustained recovery. The current pricing patterns reflect a market-wide balance between the need to secure revenue and the desire to maintain demand, with most operators anticipating continued resilience as business travel regains traction and leisure demand remains robust. The sector’s prospects are helped by longer booking horizons and fewer cancellations, suggesting a healthy trajectory for the upcoming quarters. As urban and coastal destinations adapt to evolving traveler preferences, operators are recalibrating offerings to match shifting expectations while preserving profitability. The broader travel ecosystem—including airports, transport links, and local experiences—continues to knit together a stable recovery that benefits both well-known capitals and regional hotspots. This creates a favorable environment for sustained growth and continued market interest from travelers in North America, Europe, and beyond.