“Is now the right time for local hoteliers to increase their prices?” | E.C.

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Hotel and holiday apartment owners have increased their prices as they gamble that this year will be the season of recovery and things will return to normal after two years of the pandemic. In fact, there appears to be few cheap holiday deals available for this Easter on Majorca. Demand is said to be good but the price rises are a gamble because it could all go horribly wrong.

Fuel prices are at a record high which could mean that air fares and holidays are more expensive. Inflation on the island has meant that prices have increased dramatically, in some cases they have doubled. So is this really the time for higher hotel prices? Well, I have mixed views. The last two years have been tough on the tourist industry. Hoteliers have lost a small fortune and obviously they believe that now they can start making money again. But can holidaymakers afford the increase in prices which are in the pipeline? Will it be a case that they will go to cheaper holiday destinations such as Turkey which is far cheaper?

There is a danger that Mallorca could price itself out of the market. The tour firms will say that they want to see value for money and this is certainly the case with many families coming abroad on a budget. It might have been better if price increases had been kept to a minimum until there is a full recovery in the holiday market. Mallorca should learn from past mistakes, we are living in volatile times and price is always key.