Spain hotel prices jump an average 36% as tourists return & More Breaking News Here

Spain hotel prices jump 36% in the midst of a tourist recovery boom
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Spain’s hotel prices jumped 36 per cent in comparison to April 2021 as tourists return, according to a report released on May 24 by National Institute of Statistics (INE).

The Holy Week around Easter saw tourists return in numbers with many locals taking the opportunity to return to their homes towns and to enjoy the warmer weather, however that mini boom saw hotel prices firm up averaging around €96.3 up from the previous year’s €83.14.

Similarly, rates in five-star hotels rose but by a bigger percentage, with the average price for a hotel room rising to €226.50 an increase of 23 per cent. Price rises at the bottom end of the market rose faster, with three-star hotels prices jumping 33 per cent, two star 40 per cent and one star 46 per cent.

Importantly for hotels, the all-important RevPar (revenue per room) rate rose to 11 per cent above pre-pandemic levels.

Hotel occupancy remained below 2019 levels for the first four months of the year, with 25.1 million room nights sold, a little over six per cent lower than in 2019.

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Spanish tourists accounted for 10.2 million nights in April and international travellers 14.9 million, but as numbers return, so hotels face an uphill struggle.

High inflation, staff shortages and energy prices rises are, however, all eating into profit margins.

Staffing is of particular concern for operators, with many saying activities have had to be curbed in the midst of a recovery. Many staff members left the industry during the pandemic and are not keen to return, with the jump of 36 per cent in hotel prices not translating into better wages.


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