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Tuesday, May 24, 2022
HomeLatest NewsHotels aim for recovery with higher booking rates than 2019

Hotels aim for recovery with higher booking rates than 2019

With the start of the high season just around the corner, tourism is gearing up for what will be the most “old normal” summer in three years. Spain’s high vaccination rates and the lifting of restrictions, including the use of a mask indoors, have filled the sector with optimism that sees them hope this quarter will be their last quarter. ‘numbers red” in their income statements. The estimate is based on the fact that some major hotel companies are already registering bookings higher than in 2019.

One of the first to confirm this was Paradores, who experienced an increase 11.5% revenue compared to last full year without Covid, up to 71.8 million euros compared to 64.4 million in 2019, and this was done much faster than the professions. The public company sold a total of 352,652 rooms between January and April, which assumes 2% more than the comparable period. Beyond the omicrons and in the midst of the Russian invasion of Ukraine, the dynamism of activity intensified during the Easter campaign.

For its part, Riu Hotels & Resorts, which does not publish annual or quarterly results, assures La Información that the number of bookings for April increased by 15%. compared to the same dates in 2019. This percentage was driven by last-minute hiring, which has become a “very typical trend” at this family-owned company and makes them predict a good summer. He is supported in this by Meliá, who through its CEO and Executive Vice President Gabriel Escarrerindicates that pre-pandemic levels were exceeded at Easter in major holiday destinations.

In that sense, in this week’s results presentation, they have already indicated that daily bookings have grown by double digits over the last month in the vacation segment and they are confident that their accounts will be closed by 2022 higher than three years ago. The estimate is based on an increase in revenue per room (RevPar), which in the case of this company jumped by 167.5%, and they admit that the recovery is due to “most” to price increases, in line with the hotel market, whose performance shows an average growth of 30% compared to 2019, according to the consulting company Mabrian. According to data released this Friday by the National Institute of Statistics (INE), accommodation services increased year-on-year by 5.8% in April alone, and by 3.4% this year.

Expecting a “full” recovery this year, NH Hoteles also factored in pre-coronavirus volume during the Easter holidays, citing increased demand since February. when the sixth wave began to subside. It should be noted that some of the hotels in this group are located in urban areas where business trips play a major role, which, although taking a little longer, from a firm 94% controlled by Minor, they claim that they also contributed to the rise of the occupation. However, like the previous one, the recovery is due to rising prices. If in March the average daily rate they offered was 97 euros, in April it jumped to 116 euros, “at the same level as in 2019,” as explained to this publication. And they expect it to continue rising in May.

The data shows that the balance of hotels is close to green, motivated by the resumption of activity and rising prices, if we take into account that the evolution of the percentage of expenses of foreign tourists visiting Spain this year is higher than the number of arrivals. Between January and April they arrived in this country almost 9.7 million foreign visitors, which represents an increase of 696%, and the payment amounted to 11,853 million euros, which is 794.5% more. That is progress in the game consumption was 100 percentage points higher than the number of visitors this may explain why the turnover of some companies grows faster in proportion to occupancy, although it may also be due to the fact that tourists leave more money.

From the Federation of Entrepreneurs and Hospitality (FEHT) they call for caution and point out to this facility that good forecasts because long-term tourists have begun to arrive, but asks “not to be triumphant”, since the CPI affects companies in which regular trips have more weight, because due to a closed budget they could not affect growth expenses for the last week. “I think it will be a good year, although we have to be careful about uncertainty,” they note. Encouraging expectations are also reflected in investments in the hotel business, the volume of transactions in which was unprecedented in ten years. up to 995 million euro in the first quarter, according to consulting firm CBRE, and whose appetite for this asset shows Trust deposit in which he again becomes the locomotive of the country.

The government already has confidence in the economy’s recovery in the recovery of tourism after the fall in macroeconomic forecasts due to the Russian invasion of Ukraine. First vice president, Nadia Calvino, determined the way out of the crisis to the development of this sector, since this activity is “absolutely decisive for the balance of payments”. A statement that contradicts that of Secretary of State for Tourism Fernando Valdes, who considers Perth unfeasible for this segment as it does not have “company or group of companies” which tighten the entire value chain and allow for the distribution of investment, as is the case with renewable energy. renewable or electric car and ignore “lobby” requests like Exceltur. By March 31, 84.2% of 2019 tourism GDP had already been restored, and 90% is still far away.


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