Hotel groups in the Balearics are experiencing their best summer ever in terms of price increases, profit and turnover.
With the exception of the Russian market, all European tourism markets are exceeding expectations, as is the domestic Spanish market, which is up by 10%.
Contracts for the summer, which had involved price rises of between three and five per cent or from 10 to 15% in the cases of the leading chains such as Riu and Iberostar, are contributing to the best ever Revpar ratios (up by 20% for some hotels) - these being the revenue per available room. Also having an effect is the fact that offers, which have been common in recent years, are not needing to be made, while last-minute bookings are also strong.
While the Spanish market is bouncing back and assisting with occupancy levels, the British market is also strong, aided by the exchange rate, and is spending more both in hotels and on the “complementary” offer, i.e. restaurants, bars, attractions and other non-hotel services. Scandinavian, French and Italian markets are also buoyant. Average hotel occupancy since May has been at 80%.
Ibiza and Formentera are enjoying especially good summers, with all records for revenue and turnover being beaten.
Hoteliers across the islands say that profit has improved markedly this season and that upgrades of hotels (to higher stars’ ratings) have been very well received by tour operators and customers.
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Then why all the fuss about the private sector then. Their "Federation" couldn't care less about the local economy - and let's see how much of their profits are spent updating their fake - starred hotels in Mallorca.
So the best summer ever for the hotel chains and the worst summer ever for the businesses around them. The hotels will not be happy until they have it all.