Hoteliers in the principal resort areas of Majorca are suggesting that average occupancy in August could be down by ten per cent over last year, with July having already pointed to such a trend.
Offers being made would have been unthinkable even as recently as May. In some instances there is 25% off, but even with this reduction the hotels are not being filled. Francisco Marín of the Playa de Palma hoteliers association suggests that this doesn't necessarily mean that the season will turn out to have been a poor one in terms of profit. However, the occupancy forecasts are not being met, and this will have an impact on business results.
The Majorca Hoteliers Federation says that the island's hoteliers cannot compete on price with certain competitor destination.
It is therefore merely reiterating what has been said throughout the summer and what was said prior to it. The surprise is that anyone is surprised. Prices in the likes of Turkey are generally quite a bit lower, but the availability in competitor destinations is much greater, as tour operators have felt secure in returning to places where there had been security fears. All of this was known well in advance of the season.
Tour operators from the UK and Germany have been in talks about 2019, making clear that price is a key factor. They are looking for at least a five per cent reduction by the hoteliers.
Meanwhile, airport traffic has been increasing. The airports authority Aena puts this down to tourists staying for shorter periods, a point that was made a few weeks ago by Alvaro Middelmann, the former CEO for Air Berlin in Spain and Portugal, and who is now involved with Thomas Cook Airlines Balearics. Shorter stays mean more people but less hotel occupancy was his point.
