ANDALUCIA has broken records this summer, despite the fact that prices have reached historic highs and inflation is a serious problem.
Hotels along the coast are seeing 85% occupancy. Tourists aren’t planning months in advance – they’re booking just days before their holidays begin.
Gaspar Saez, director at Barceo Hotel Group, which runs 25 hotels in Andalucia, says last-minute trends are ‘the main difference compared to previous years’. Rocio Galan from Melia Hotels confirms that the trend has changed, revealing a 10% increase in late bookings for the Torremolinos/Costa del Sol areas.
The Spanish market is in decline, especially along Malaga’s coast (excluding capital), but international tourists are stepping up to the plate.
Alvaro Graciani warns, without foreigners the situation could have been very grim. He says that the Spanish are tightening up their belts due to rising prices.
Malaga and Sevilla airports are experiencing record arrivals. Increased numbers of American and Portuguese tourists are helping to fill hotel rooms. British visitors have also been steady.
Even though the room rates are high, tourists continue to flock to Andalucia. They spend big and enjoy the good life. For example, hotel prices jumped 7.3% in July and 6.2% in August compared to 2024, with the average price per night for a room sitting at €143 in July and €157 in August. In 2019, those same rooms were €107 and €121.
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Rafael Barba from the Federation of Andalusian Hotels says the price hikes are driven by demand and AI, which is adjusting rates in real-time based on weather and room availability.
But there’s a catch – tourists are spending less once they’re there, with hotel service consumption down by 6-9%.
While July and August have been record-breakers, the next challenge for the tourism sector is extending the high season – and tourism bosses are eyeing a boost in September.
As tourists of different types, such as couples and older groups, book their stay later in the autumn months, occupancy is expected to increase from 4.12% to 80.12%.
Travel News at The Olive Press. Click Here to Read More.