Impacto del low cost en los precios hoteleros españoles

The effects of the availability of low-cost flights on the hotel sector in Spain are considered. It is suggested that hotel prices have been adversely affected by an increase of 4.1% in the number of urban hotel rooms between 2003 and 2004. In the same period, there was a reduction of 2.8% in the number of foreign tourists, a reduction of overnight stays in 3-star, 2-star and 1-star hotels of 0.9, 4.3 and 5.4% respectively and a decrease in the average amount of money spent by tourists. There was a significant fall in the occupancy rate of hotels in Madrid, whereas this was less pronounced in Barcelona, and the increasing popularity of self-catering flats resulted in fewer guests in hotels, although 4-star and 5-star hotels suffered less than cheaper hotels. Possible strategies for the rationalization of hotel costs are discussed.