Wednesday, January 17, 2024
BEONx reveals Spain’s hotel industry hits record ADRs pre-FITUR, showcasing unprecedented growth and transformation post-pandemic.
In preparation for FITUR, BEONx, a prominent player in travel technology aiming to transform hotel revenue strategies for lasting profitability, has released a study showcasing unprecedented average daily room rate (ADR) levels in Spain. This marks a historic peak in the hospitality sector.
The study, titled “Pendulum Effect in the Spanish Hospitality Industry,” highlights a remarkable shift in Spain’s hospitality field, akin to a pendulum’s swing, breaking barriers set before the COVID-19 era. Over the last three years, ADR growth has been extraordinary, eclipsing two decades of advancement prior to the pandemic. To illustrate, from 2002 to 2020, room rates increased by 14.68%. In contrast, from 2021 to 2023, there was a staggering rise of 27.98%, according to Instituto Nacional de Estadística data.
The COVID-19 pandemic’s effect on societal norms and sustainability echoed in the global tourism industry, leading to notable changes in hotel room pricing. The sector’s revival post-pandemic has been surprising, with factors such as economic inflation, the accumulated demand of global tourists, and hotels’ need to recoup lost income contributing to the price hike. This trend is not limited to hotels; the global aviation sector also saw a 15% growth post-pandemic, indicating a global recovery.
This surge has brought the global travel industry to a point of uncertainty, raising concerns about the longevity of this growth and how it will influence hotel pricing strategies.
Rubén Sánchez, CEO of BEONx, commented, “The last three years have seen unparalleled growth in ADR, surpassing two decades of progress prior to the pandemic.” As the industry faces uncertain times, various potential price evolution scenarios in Spain are considered. Ruben discusses three possible paths: significant growth, moderate growth, or a minor adjustment, based on current and future market conditions. He questions, “How do hotels ensure price adaptability in these changing scenarios?” BEONx highlights the critical influence of macro factors – economic, technological, demographic, political, and socio-cultural – on pricing strategies. Adapting to changes and using AI-based forecasting models is crucial in this fluid environment. “AI is not just a tool; it’s a crucial partner in dealing with uncertainty and improving performance,” Ruben adds.
BEONx will be at FITUR, at stand 8D26/P8, showcasing innovative AI tools for pricing optimization, occupancy prediction, and revenue management.
Saturday, April 27, 2024
Saturday, April 27, 2024
Sunday, April 28, 2024
