Hotel rate hikes appear minor

Hotel rate hikes appear minor

Greek hoteliers and major foreign tour operators are signing contracts for 2024 holiday packages with low, single-digit price increases. According to converging market estimates, the hikes range around 5%, a level commensurate with inflation in Europe, which in August stood at 5.3%.

These rather moderate – as hoteliers say – price hikes come after increases of 11-12% last year and the much higher increases recorded in the segment of ultra-luxury tourism.

However, even in these milder increases, compared to the past, significant differences are recorded among hoteliers and destinations, as some resorts, in which there have usually been significant investments in upgrading infrastructure and services, achieve better prices, while some hotels forced to make reductions.

Still, hoteliers point out that the prices agreed now are reference prices and not necessarily real prices, at which actions can finally be taken in 2024. This is because several entrepreneurs, especially those who saw their occupancy decline this year, have informally agreed that since the foreign operators will bring a significant volume of clientele, they are willing to proceed with offers with discounts of 10% to 20% in order to increase their turnover. 

Units on Mykonos and Santorini are mentioned as typical examples, as experienced entrepreneurs in the sector appear determined to show the necessary flexibility, depending on demand, in order to recover any ground lost this year. It is noted that international arrivals have declined this year on Mykonos and Santorini and the provisional data show a drop in hotel occupancy and overnight stays at properties available through short-term leases.

What everyone seems to agree on is that the demand is there for Greece and for 2024, although the price levels to which Greek hotels have now risen are judged to be indulgently “demanding.” It is worth mentioning that the contracts signed now with the tour operators in no way guarantee a specific number of guests. At the same time, hoteliers commit a certain share of their available rooms and not all of them, as they now achieve satisfactory sales directly or through other channels, such as online platforms.

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