Spanish hospitality sees unprecedented growth post-COVID
BEONx unveils study revealing the highest hotel prices ever recorded
Spanish travel technology company BEONx has revealed it conducted a study revealing the highest-ever average daily room rate (ADR) values in Spain, which unveiled the highest prices ever recorded in the industry.
The Pendulum Effect in the Spanish Hospitality Industry study reveals that the Spanish hospitality sector has undergone a transformation, experiencing a phenomenon akin to a pendulum swing, surpassing pre-COVID limits.
The last three years have seen unparalleled growth in ADR, surpassing two decades of progress prior to the pandemic.
Between 2002 and 2020, prices surged by 14.68%. However, in a mere two-year span from 2021 to 2023, prices skyrocketed by a staggering 27.98%, based on data from the Instituto Nacional de Estadística.
The impact of the COVID-19 pandemic on societal norms and sustainability reverberated through the tourism sector, manifesting shifts in hotel room pricing. The resurgence post-pandemic fueled a remarkable rebound.
Factors attributing to this surge included economic inflation, tourists' pent-up demand after prolonged confinement, and hotels' imperative to recover lost revenue.
Moreover, this trend extended to the aviation industry, which has grown by 15 % after COVID-19 pandemic, signifying a broader global resurgence.
This growth has propelled the industry into a phase of uncertainty, prompting questions about the sustainability of this surge and its adaptive implications for hotel pricing strategies.
"The last three years have seen unparalleled growth in ADR, surpassing two decades of progress prior to the pandemic," said Rubén Sánchez, CEO of BEONx.
Sánchez outlined three possible trajectories - high growth, moderate growth, or a slight correction - based on current trends and future market dynamics.
"How do hotels ensure price adaptability amidst evolving scenarios?," he said.
"AI is not merely a tool; it’s our strategic ally in navigating uncertainty and enhancing performance."