Competitive pressure is a factor in hotel price reductions.

Competitive pressure is a factor in hotel price reductions. | Miquel À. Cañellas

Majorca Daily Bulletin reporterPalma04/08/2018 00:00
TW

Another analysis of hotel prices by Minorca-based company Mabrian Technologies points to an average decrease in August prices of 4.6% in the Balearics, the Canaries, the Costa Brava and the Costa Blanca. The company concludes that these reductions have been necessary in order to "reactivate demand in August" and are a response to what was an "unstable July" and a general decrease in the length of overnight stays in Spain during the first half of the year.

The analysis was of some 1,800 hotels in the four destinations - three, four and five stars. The highest overall decrease in price is on the Costa Blanca, where hotels in Benidorm have been making clear their concerns about a drop in occupancy. The fall is by 6.2% to an average of 166 euros compared with August 2017.

In the Balearics, the overall decrease is 3.9% to an average of 230 euros. In all four destinations, the most marked drop is for five-star hotels, with the Balearic figure being twenty euros lower (318) than last year. At three-star level there is little variation, a mere one euro in the case of the Balearics. In the Canaries and on the Costa Brava, the average price of a three-star is up fractionally.

Mabrian make the point, as if it needs making again, that there is a significant difference between Spanish prices and those in Turkey. Hotels in Antalya and Marmaris are less expensive for each of the star ratings compared with the four Spanish destinations. For a three-star, for instance, the price in the Balearics is 170 euros. In Marmaris it is 66 euros and in Antalya it is 43.