Significant price increases in hotels of Mediterranean destinations

Prices of mostly luxury and five-star hotels have risen this summer in popular Mediterranean destinations, according to a study by Spanish Mabrian Technologies conducted on more than 73,000 hotels.

In the analysis of the main Mediterranean destinations – Greece, Turkey, Italy, Spain, and Portugal – it was noticed that hotel prices have increased significantly compared to the average prices of 2019, according to the Spanish company.

Greece is, by far, the Mediterranean destination with the highest price increase – + 31% for four star hotels and + 47% for five star hotels.

Turkey is a country with the lowest price increases, while it also records a drop (-4%) in three-star hotels.

According to Mabrian, the rise in prices is explained by the fact that many hotels remain closed or only partially open and this affects prices: less supply always raises prices if demand remains stable.

Also, the rise in prices in 5 star hotels is explained by the fact that the wealthiest travelers are not affected by the high cost of PCR tests. The data also show that those who travel for holidays spend longer time at the destination, thus increasing overall demand.

Finally, hotels in Europe seem to have attracted transatlantic travelers who cannot go to other distant destinations due to restrictions and there is also the factor of operating cost in hotels which has increased due to the cost of protection from covid-19.