Hotel prices in coastal destinations fall throughout Spain to reach a 36% decrease in some cases

9/12/2008 Acrobat (pdf, 62 KB)

According to the Hotel Price Index in Hotels.com,

Spain presents an overall fall in tariffs of 8% in the third quarter of 2008 compared to the same period of 2007

Hotel prices in Spanish coastal destinations fell during the third quarter of 2008, according to data extracted from the Hotel Price Index (HPI) of Hotels.com, the most visited hotel booking website in the world*. This is a significant fact if we take into account that sun and beach holidays are the star product of the Spanish tourist offer and that emblematic cities such as Ibiza fall up to 36%.

In this edition of the HPI the data obtained show a fall in hotel prices nationally and internationally. This data is a clear example of the effects of the economic crisis, given that this is the first time that prices fall year-on-year during the summer months.

The HPI is a periodic report that highlights price variations and how these changes affect the tourism sector as a whole. The index is based on a sample of 68,000 hotels, located in 12,500 cities worldwide, which makes an exhaustive study of the real hotel prices paid by consumers. The main focuses of the December 2008 edition are the variation of prices in the reflected period, the most expensive and the cheapest destinations, as well as the most visited. In addition, this time special emphasis is placed on how the crisis affects the hotel sector in Spain and worldwide.

European fares rise, but timidly

European tariffs are up slightly in general terms (by 2%), a figure much lower than that registered in previous years. However, European countries and cities continue to remain the most expensive in the world.

The most remarkable data, without a doubt, is the reference to the United Kingdom, which with a 13% decrease in its prices, registers the largest fall at European level. This decline relegates it to the fourth position in the ranking of the most expensive countries, after having previously been at the top of the list. These data are a clear reflection of the weakness of the pound sterling against the euro in this period.

At the European level, Spain ranks third among the countries with the sharpest declines, after the United Kingdom and Ireland, which also has a fall of 8%.

On the opposite side of the balance, only four nations reveal positive figures in the price variation and none of them exceeds the 2% increase. These four countries are Switzerland, Denmark, Germany and Poland.

Despite the price drops, European destinations are consolidated as the most expensive in the world, especially the Scandinavian region that has three of the five countries with the highest rates on the continent. In first place is Norway with an average of 149 euros per night. In second place, with a price increase of 2%, is Switzerland, whose average price is around 147 euros.

In this sense, Spain is in the 15th position among the most expensive countries on the continent.

Spain revises prices downwards Spain sees the price of its hotel rooms reduced by up to 8%, standing at an average rate of 100 euros. The most affected destinations are the beach, a star tourist product in Spain, both for foreign and domestic tourists. Especially noteworthy are the cases of two emblematic summer destinations, the city of Ibiza, which sees its prices fall by 36% to stand at 70 euros on average, and Malaga, which with an average rate of 89 euros, falls by 21% compared to the third quarter of 2007. Both destinations are characterized by their high cost in the previous period.

The decreasing trend is constant throughout the Spanish territory. The only cities that have increased their prices are Puerto de la Cruz, in Tenerife (with a 7% increase in their prices), San Antonio in Ibiza, (with a 5% increase in their prices), Alicante and Tarragona, both with a 5% increase. The only Spanish destination that has maintained its prices is La Playa del Inglés, in Gran Canaria (71 euros on average).

As for the two large cities, Madrid and Barcelonaa, they also present a fall in their prices, estimated at 7%, which places their average rates at 104 and 122 euros respectively.

San Sebastian is the most expensive town

The most expensive Spanish city is San Sebastian with an average price of 161 euros in the price of its hotels. However, this value represents a fall of 11% compared to 2007, following the national downward trend. Next in the price list are Marbella (151 euros), Benidorm (134 euros), Barcelona (122 euros) and Palma de Mallorca (115 euros). Paradoxically, these five cities are in the lead in terms of price, despite having experienced declines in all cases.

The cheapest city in Spain despite having registered the most pronounced rate increase, is Puerto de la Cruz, in Tenerife, with an average of 64 euros. Granada (69 euros), Ibiza (70 euros), Playa del Inglés, in Gran Canaria (71 euros), and Córdoba (73 euros) complete the Top 5 cities with lower rates.

* The Hotels.com website is the most visited in the 'Hotels/Accommodation Provider' category, according to comScore Media Metrix (January-December 2007).

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