Despite a start of season below expectations, Spanish hotels in the main holiday destinations are not lowering prices.
Turkey’s recovery this last year places it as a strong competitor for Spain. Its main attraction, sun and beach, and its considerably cheaper accommodation prices, are causing a bookings outflow by the traditional source markets in Europe: United Kingdom and Germany, that register increases of more than 80% for some areas of the Turkish coast.
The growing concern of the Spanish hotel industry towards the slow season start and the low sales volume so far, has become these days the main topic of debate of the Spanish coast destinations.
An analysis elaborated by Mabrian Technologies through its Tourism Intelligence platform, analyses the impact of this situation on the prices offered by Spanish hotels in the country’s main holiday destinations for the high season. For this, the prices of 2,130 hotels offered in OTAs have been monitored, for stays between 15th June and 15th September searched three months in advance.
This platform registers and compares accommodation prices for a specific destination’s hotels, differentiating by categories and different advance sections in bookings (three months before, a month before, two weeks before, etc.). By doing so, they manage to establish a temporal price evolution in comparison to other destinations, and configure diversion alerts in order to help their clients react quickly to market changes. This information is also compared to the evolution of travel intention and searches for the destination, to enrich the analysis and support the pricing strategy and the RMS.
For the study, hotel prices have been taken for Costa Brava, Costa Blanca, the Balearic and Canary Islands, in comparison with Antalya and Marmaris, two of the most important coastal tourist areas of Turkey.
As it’s clearly shown in the graphical comparison, Turkish coast hotels offer significantly lower average prices, with differences that reach up to 73% in three stars category, compared to the prices offered in the Balearics.
In terms of national destinations, Balearics is the one that marks higher prices in all categories, while the rest of destinations alternate their positions in the average prices ranking of each category. Three stars category is the one with more prices disparity, showing differences of up to 50% between destinations such as Canary and Balearic Islands.
With respect to 2017, no significant variation in the prices offered in high season was detected in these Spanish destinations, what seems to indicate that hoteliers rely on recovering occupation without having to lower prices. In fact, three stars hotels show an average increase of around 4%. Four stars establishments are stable (-0,5%), while the 5 stars show more disparity, but leave an average fall of 3,67%.
To complement the analysis, from Mabrian’s platform an analysis of the satisfaction shown has also been done regarding the hotel services in these destinations, through the analysis of more than 429.744 hotel reviews emitted in the main opinion portals (TripAdvisor and Booking) between June 15, 2017 and June 15, 2018.
This Hotel satisfaction Index (HSi) is obtained through the semantic analysis of these reviews texts through Natural Language Processing and Artificial Intelligence techniques, which allow to extract the sentiment and measure the users’ satisfaction level with the hotel service in general, and even with the different departments that compose it.
With this comparison we see how, despite the great differences in offered prices, Turkish destinations offer very competitive satisfaction levels and, in some cases, higher than the leading Spanish destinations. Only in the 5 stars category, Spanish destinations show a competitive advantage.
This knowledge, together with many other utilities that the correct use of the available data offers through tools such as Mabrian’s, allows hoteliers and destination managers to monitor the market evolution in a global way, discover weaknesses and opportunities, and make operative and strategic decisions in an agile way.