The Spanish company eBooking.com warns that an “excessive and continued” rise in the prices of holiday accommodation could cause demand to shift to other tourist markets, causing “significant” damage to the Spanish tourism sector in the medium term.
“The hotel sector must be aware that an excessive rise in prices would automatically result in a shift in demand to other areas with lower prices,” says Toni Raurich, director of eBooking.com.
eBooking has already warned of the higher price of holiday accommodation in Spain in 2023 compared to the previous year. Specifically, at Easter this year, bookings were 22% more expensive than in 2022. The price in 2023 was 155 euros on average per night, compared to the 127 euros it cost to book in 2022.
Likewise, during the May long weekend, bookings were 25% more expensive than the previous year. The average price per night in 2023 was 150 euros, compared to 120 euros in 2022, with striking cases such as Catalonia, the autonomous community that experienced the highest price increase (+78.3%), from an average of 118.4 euros per night to 211.1 euros.
“At some point these high prices in Spain and, in particular, in some autonomous communities, could be detrimental to us, bearing in mind that competing markets, such as Portugal or Greece, are much cheaper,” Raurich points out.
As for the reasons behind these significant price increases, eBooking points out that it is due to the high inflation that is affecting tourism, along with the strong demand from the population, who want to travel despite the high prices. “Prices are so high because there is still demand to support it,” concludes Raurich.