This annual warning from tour operators comes this year from Spain.
According to Tourism DataBank, while prices continue to rise for tourists in Spain and Türkiye, companies like TUI, Jet2, and Alpitour are once again cautioning against further price hikes.
Ceiling prices?
An analysis published in Spain reveals that average hotel prices have increased by nearly 12% compared to last year. Airfares to Spain’s coasts and islands have risen by 27% this summer.
Travel costs to increase in 2024
According to the STR and Cushman & Wakefield barometer, the average daily rate (ADR) for Spanish hotels between January and March 2024 exceeded the 2023 figures by almost 12%, reaching 134 euros. Mabrian analysis indicates that from June 1 to September 15, 2024, low-cost flights to Spain will be 42% more expensive in the UK, while traditional airline fares will rise by 11%. In Germany, low-cost flights have increased by 12%.
Are tourists accepting price increases?
Despite a nearly stagnant economic situation in Europe, consumers had been accepting these vacation price increases. However, Europe’s GDP has stagnated, and even declined. The increase in demand this summer has driven up the cost of vacations in countries like Spain.
Security still a concern
Uncertainty and conflicts have once again highlighted security issues. The number of tourists to Egypt has decreased by 40% this year due to uncertainty and proximity to Gaza. Tourists avoiding this region are now choosing Spain, Italy, and Greece instead.
What did alpitour say?
Gabriele Burgio, noting that consumers might perceive Spain as a less safe destination but still prefer Türkiye, commented on Spain, “It’s a destination with many advantages and good infrastructure... Tour operators view Spain as a safe bet. So far, there has been an acceptable price increase, and we can pass this on to customers.” However, the Alpitour Chairman added, “Price increases don’t just affect travel; they also mean reduced disposable income for families. We’re not yet at the point of giving up travel, though.”
Demand for cheap destinations
According to Gabriele Burgio, more European consumers are opting for cheap destinations. Burgio stated, “Türkiye has very modern and competitive hotels. European consumers may not consider Türkiye as safe a destination as Spain, but lower prices might encourage them to view things differently.”
Will Germans reduce demand?
The German tourism group TUI has expressed concern over price increases in Spain, considering the issues affecting the German economy that could impact consumer travel plans.
TUI Deutschland CEO Stefan Baumert stated that TUI will bring 6 million tourists to Spain in 2024, but noted, “There is an increase in costs that could reduce demand. If this continues, we will see a change. This is happening at a time when many consumers in Germany are seeing their incomes decrease, and many economic sectors are struggling.”
Jet2 on rising costs
Steve Heapy, CEO of Jet2 and Jet2Holidays, also voiced concerns over rising prices in Spain, stating, “Demand in 2024 will be stronger than last year. We have favorable winds, but we are also facing obstacles such as increasing costs, including higher taxes on air transport, which could reduce demand. Be mindful of some policies. In the end, only the wealthy will be able to travel; this is a big mistake.”
