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Calendar scheduling influences the hotel industry during New Year's Eve, which has led to a 2% price increase.
The hotel sector in Spain reduced its rates last New Year's Eve, experiencing an average decrease of 2% compared to the previous year's data. According to the Hotel Pricing Outlook report by the consulting firm Simon-Kucher, this trend was influenced by the location of the dates on the calendar, as December 31 fell on a Wednesday, which complicated travel planning and reduced last-minute bookings.
Madrid and Barcelona led the way in terms of price cuts in the domestic market. Both cities saw their prices fall sharply, with a decrease of 8% in Madrid and 10% in Barcelona. Despite these adjustments, the Spanish capital continued to rank fourth among European cities with the most expensive accommodations, behind only London, Paris and Amsterdam. It is important to note that London, although it ranked first with an average of 364 euros, also experienced a reduction of 10% compared to the previous year.
In other parts of the country, the situation was heterogeneous. On the one hand, Seville and Malaga experienced small decreases of 2% and 4% respectively, while in the Balearic Islands there were no significant changes in prices.
The Canary Islands and the Valencian Community experienced significant price increases. Unlike what happened on the mainland, the Canary Islands established themselves as the most expensive destination in the country, with an increase of 10% in their rates, reaching an average of 378 euros per night. On the other hand, the Valencian Community also recorded increases, with Alicante standing out with an increase of 19% and Valencia with an increase of 4%.
The study conducted by the consulting firm revealed that four-star hotels maintained the most stable rates. In contrast, lower category accommodations experienced the most pronounced fluctuations during that time.
This circumstance revealed a marked "market divide" within the sector: while the luxury segment continued to grow solidly, the brands operating in the economy segment experienced a decline in both occupancy and average daily rate (ADR). In view of this situation, it was anticipated that by 2026 there would be a "two-speed demand", which led hotel chains to review and adjust their commercial strategies for the short term.
Images provided by: Katemangostar on Freepik.
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