A price war is coming to the hotels of Attica

At a low rate of 39% is the level of recovery of the hotel market of Athens and Thessaloniki in the nine months of 2021 compared to the corresponding period of 2019, in terms of nights according to the latest report of GBR Consulting.

The low bookings in combination with the fact that the offer of rooms is at the levels of 2019 foreshadow a “price war” between the hotels, as the general secretary of the Athens Attica Argosaronikos Hoteliers Association, Mr. Eugenios Vasilikos, tells ot.gr.

It should also be noted that 39% is a much lower percentage than that recorded by resorts (57%) signaling the fact that in the era of the pandemic Greek tourism is still moving at two speeds. The above data also highlight the areas in which the government should focus its interest in the context of political support for the sector.

With the offer of rooms having been fully restored, the data by September show that the hotel markets of Athens and Thessaloniki have recovered by 39% in terms of overnight stays compared to the same period of 2019, GBR Consulting points out.

In August things were much better as Athens recovered in terms of overnight stays, by 71% while September recorded a recovery of 66%.

Thessaloniki moved in the opposite direction, perhaps due to the International Fair as it recorded a recovery rate for August at the levels of 61% in August and 75% for September, always in terms of overnight stays compared to the corresponding months of 2019.

Resorts at 57%

The resorts for their part reached overnight stays at the levels of 89% and 86% during the months of August and September respectively compared to the same months of 2019.

In the first month of January-September, the resorts recorded a recovery at the level of 57% compared to the corresponding period of 2019.

Total revenue per room at resorts was significantly higher than the same period in 2019, which was probably fueled by the much better available consumer liquidity that accumulated during the pandemic, according to GBR Consulting.

Price war is coming

Commenting on the image of Attica hotels in ot.gr, the general secretary of the Athens Hotel Attica Argosaronikos Mr. Eugenios Vasilikos points out that the main feature is the prevalence of last minute booking as the month usually starts with low bookings and usually closes at the highest point.

He estimates that it is very difficult for the hotels of Attica to achieve by the end of the year 50% of the reservations of 2019, while he underlines the risk of a “price war”

In particular, according to the large supply of rooms, the recovery and short-term lease will intensify competition with the first signs of “price war” already visible

If we add to the above the increased energy cost, the results for the hotels of Attica will not be good in 2021, warns Mr. Vasilikos.

Greece faster than Spain, slower than Turkey

However, the Greek tourism market is recovering more slowly than the Turkish market, but faster than the Spanish. According to GBR Consulting with 8.6 million international tourists in the period January – August 2021 in our country, there was a decrease of 61% compared to the same period of 2019.

Competitive Spain recorded 15.0 million international arrivals in January-August, down 74% from the same period in 2019, while Turkey with 14.1 million international arrivals by August compared to 31.0 million tourists in the same period. of 2019 recorded a drop of 55%.

Finally, according to the forecasts of Tourism Economics, the Greek tourism market will recover strongly in 2022, but the full recovery is expected in 2023, while long-distance travel in Greece is expected to recover in 2024.