Hotel prices to rise by up to 20% in 2016

The summer season has barely started but Majorca’s hoteliers have for the last couple of weeks been in negotiation with tour operators over contracts for 2016.
And these negotiations have been proving to be very positive for hoteliers, especially the ones which have been engaged in modernising their hotels.
Prices for renovated and upgraded hotels are said to be set to rise by up to 20%.
Compensation
The president of the hoteliers’ association for Alcudia and Can Picafort, Jaume Horrach, explains that there has to be some “compensation” for the investment which has gone into improvements and increases in stars’ ratings, and this comes in the form of higher prices to tour operators.
There are, he says, hoteliers who will not yield to pressures to keep prices lower and for whom there are other options in terms of marketing.
The minimum increase on the bay of Alcudia in 2016, therefore, is expected to be 10%.
The hoteliers are aware that demand from different markets - Sweden, Switzerland, Belgium, Ireland and Spain as well as the big two of the UK and Germany - is giving them reason to seek price rises for upgraded hotels.