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Hotel prices drop in August

An average price decrease of 4.6% is recorded, compared to the average prices offered in August 2017, in some of the main tourist areas of Spain.

After a first semester in which overnight stays in Spain fell by 0.2% (according to INE data), marking the first drop since 2013, and an unstable July, that seems will not compensate this drop, hotels in some of the country’s main tourist areas have been forced to lower prices to try to reactivate demand for August.

A study conducted by Mabrian Technologies through its Tourist Intelligence platform, shows how average hotel prices offered for stays in August are on average 4.6% lower than those offered in the same period of 2017. For the study, prices of 1,802 3-,4- and 5-star hotels in some of the most important holiday areas in Spain: Canary Islands, Balearic Islands, Costa Blanca and Costa Brava have been analysed.

By categories, 5-star hotels lead the decline, falling by an average of -6.8% compared to August 2017, and even reaching drops of -8.7% in the case of the Canary Islands. 4-star establishments have reduced their prices by an average of -5.35%, while 3-star hotels are the only ones that point to a slight increase in the average rate by +1.2%.

Among the tourist areas analysed in the study, Costa Blanca is the one that records a more marked average prices decrease, by -6.2%, possibly forced by a beginning of July with the least occupation since 2014, as reported by the Hosbec hotel management. The rest of areas also show declines for this next August, but to a lesser extent. Thus, Canary Islands fall by -4.8%, Costa Brava by -3.92% and Balearic Islands by -3.89%.

Lower prices but far from the Turkish competition

Despite the average prices fall that these Spanish destinations show, the differences marked with the direct competitor destinations, like Turkey, are still enormous, as already illustrated in an earlier study published in July by Mabrian Technologies. This, although in some reference tourist areas in Turkey, like Marmaris, hotel average prices in August 2018 have increased by more than 20%, compared to the previous year.

Even so, differences of up to 295% are observed between average prices offered for 3-star category hotels in the Balearics, the most expensive destination of the study in all categories, compared to these same category establishments in Antalya (Turkish coast).

A strong and well-positioned hotel sector

 The Spanish Confederation of Hotels and Tourist Accommodations (Cehat), is cautious when assessing this summer season’s result, since it’s expected that the national market will be able to supply the fall of foreign visitors during the season’s main months.

Based on the fact that 2017 was a year of historical records, both in visitors and overnight stays, they are realistic when it comes to admitting that it will be very difficult to match this data, as declared by its President, Juan Molas.

However, the sector shows signs of strength and adaptability to this new scenario, since indicators on Average Daily Rate (ADR) and Revenue per Available Room (RevPar) show moderate growths in the first semester: +1.6% and +0.1% respectively.