Inflationary pressures are leading to demands by Mallorca's hoteliers for tour operators to increase the price of packages by between ten and fifteen per cent in 2023.
The travel associations in the UK and Germany, ABTA and DRV, are highly critical of price increases envisaged by hoteliers for the contracting of hotel beds; they describe them as "exorbitant". Individual tour operators are meanwhile in intense negotiations for next summer's prices.
The hoteliers' view is that they have no choice but to raise prices. This isn't in order to boost financial performance; simply to maintain it. While tour operators say that this will make Mallorca (and the rest of the Balearics) more expensive by comparison with competitor destinations, they are also aware that these competitors face much the same pressures.
ABTA and DRV are forecasting that the average length of stay of in 2023 will be reduced because of higher prices - going down from an average of six nights to four or five.
It isn't just the hoteliers who have to contend with rising costs. So also do the airlines, who are predicting increases of 20%.
For some weeks, there has been much discussion about what will happen after this summer. Spain's national confederation of hotels has said that this summer should be "enjoyed", as there are concerns about what will follow. This isn't so much about this winter, especially in respect of Mallorca, given the comparatively low level of tourism, but more about summer 2023. The discussion has not only had to to do with prices but also with ongoing difficulties regarding staff shortages.
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If there's a reduction in tourists/income no doubt the hoteliers will be blaming the government and the tourist tax, nothing to do with their own price hikes of course.
Well if this is the upmarket push. Significant improvements need to be made to the resorts and environment in Mallorca. The island will need to work better. The market segments the islands attract need to be more defined. Young’uns in work will always have money to party. The affluent older market is stable. The family mid lower market is the one likely to be hardest hit. The bottom feeders will go elsewhere or no where. As Stan says next year will be different. If the hotels can pass on the price rises good luck to them. Some will win some not.
This has to be Madness. The World is in a rising costs crisis. These Hoteliers will be cutting their own throats. They will be killing their Geese who lay their Golden Income Eggs. By next year the majority of people will be struggling to eat. Let Lone go on a Holiday. Those Hoteliers need to completely rethink their future planning.