Monday, June 08, 2009

Hotels in Spain 30% full for July and August


Falling hotel rates and cheap air fares to Spain and Greece will boost late bookings to these destinations, while others are effectively full or over-priced.
Hugh Morgan, Monarch operations and overseas purchasing director, told a Spanish tourism conference last week: ‘I know hoteliers now in Spain who still only have 30% occupancy for July and August. They are actually coming to us saying, ‘what price do you need to fill this?' ‘I have never seen that in the eons that I have been working in this industry. Normally, July and August are 70-80% sold by now.'

Speaking at 'The Year Ahead – A Year Of Change In The Travel Industry' seminar, part of the 'A Taste of Spain Travel 2009' trade show in London, Morgan said it was hard to predict if the lates market would rescue Spain’s summer – it is about 16% down year-on-year, while the UK market is generally about 11% down.‘It is so price-sensitive. If you get the prices wrong, you will not sell the holiday,’ he explained.

Fellow speaker Paul Evans, chief executive of Lowcost Group, said: ‘There has been a lot of PR spin about Turkey and Egypt. But do not anybody kid themselves – the vast majority of business will end up going to Spain.’He said fares to Turkey are around £300 while Spain is £80-£150 so any savings on hotel accommodation in Turkey are lost on the airline seat.

Evans added that 55% of his firm’s sales on 1 June were for June, reflecting the ‘incredibly late booking window’.He predicted bigger operators will hold their margins but said for online operators, the bed bank market has been ‘particularly brutal and competitive’.

1 comments:

Ricky said...

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