Tourism re­cov­ery al­lows prices to rise at last

Costa Levante News - - NEWS -

By Shel­ley Lid­dell COSTA Blanca ho­tel own­ers have been able to raise their tar­iffs by an av­er­age of 5% thanks to the cur­rent tourist boom in the area.

The num­ber of Span­ish hol­i­day­mak­ers vis­it­ing the Costa Blanca is also on the rise.

The ma­jor­ity of ho­tels froze their prices in the years fol­low­ing the eco­nomic slump in Spain. When they up­dated their prices, they launched many of­fers and dis­counts, so the price rise wasn't re­ally ap­plied.

Guests book­ing well in ad­vance also en­joyed a bet­ter rate.

Now busi­ness is boom­ing, many ho­tels have in­vested heav­ily to up­grade their in­stal­la­tions, so they are now ap­ply­ing an av­er­age rise of 5% to their room rates.

Even with this small in­crease in price, Costa Blanca ho­tels are still cheaper with re­gard to their qual­ity/price re­la­tion­ship in com­par­i­son to ho­tels in other parts of Spain.

Ac­cord­ing to the Na­tional In­sti­tute of Sta­tis­tics, the av­er­age rev­enue gen­er­ated per room is €64,40, which is a 4% rise in com­par­i­son to 2016, but still nowhere near ho­tels in Cataluña (€94.50), the Ca­nary Is­lands (€87), An­dalu­cia (€81) or the Balearic Is­lands (€75).

The Costa Blanca tourism mar­ket still de­pends heav­ily on Bri­tish tour op­er­a­tors, who sign their con­tracts two years in ad­vance. This ex­plains why the av­er­age rev­enue per room in Benidorm is around €57.20, while in Ali­cante it is €47.

These tour op­er­a­tors are con­stantly putting pres­sure on to ob­tain the best rates for their clients, as nowa­days more and more peo­ple pre­fer to or­gan­ise their own low-cost flights and book di­rectly with the ho­tel, rather than book a pack­age deal with a tour op­er­a­tor

Some Benidorm ho­tels now pre­fer to of­fer dis­counts and ad­di­tional ser­vices to clients book­ing di­rectly on their web­page.

Oth­ers have taken the bold step of not work­ing with tour op­er­a­tors any more. By rul­ing out the mid­dle­man, the ho­tel stands to make more money and can of­fer cheaper rates to the guest.

Dur­ing the height of the sum­mer sea­son, many ho­tels pre­fer to cater to the Span­ish mar­ket, as Span­ish guests tend to spend more than for­eign guests, but last year for­eign­ers spent a daily av­er­age of €138, a 6.5% in­crease from the pre­vi­ous year..

Dur­ing 2016, Spain regis­tered a record-break­ing 75.3 mil­lion vis­i­tors, a 9.9% in­crease on 2015 fig­ures. Of these, six mil­lion stayed on the Costa Blanca, half of them in Benidorm.

Be­tween May and the end of Oc­to­ber, 66,000 flights and 13 mil­lion pas­sen­gers will pass through Ali­cante-Elche air­port, 17% more than in 2015. A large num­ber of these vis­i­tors are Bri­tish tourists who do not seem to be af­fected by Brexit and the low pound.

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