Jason Moore21/10/2016 00:00
TW
3

It does sound quite amazing that hoteliers are thinking of raising their prices by 15 to 20 per cent for next summer when there is so much uncertainty around Europe. It must be remembered that we must add the additional cost of the tourist tax so a holiday to Majorca just became rather costly. Local hoteliers obviously know what they are doing: after all they are the powerhouse of the local tourist industry. But I believe that on this occasion they could be mistaken. The British market is of vital importance to Majorca but it has been hit by the fall in the value of the pound. British families will be looking for a holiday destination which offers great value for money because they will be on an even tighter budget. It also must be remembered that this holiday season was rather different than usual because of the security concerns over North Africa and to a lesser extent Turkey.

So, perhaps now is not the time to think about increasing prices. Perhaps now is the time to consolidate and plan for the future. Brexit will not only hit the British market, it is also going to hit the industry across Europe. Consumers are going to have less money to spend. As we all know, Majorca is not a cheap holiday destination anyway. I would urge hoteliers to have a major rethink. There is a real danger that Majorca could price itself out of the market. Price is key within the holiday industry, and tourists will just vote with their feet and go elsewhere.