Industries at war

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MALLORCA HOTELS: Willing to pay the price to raise the price.

BRITISH tour operators might be biting off more than they can chew by going to war with Mallorca’s powerful hotel industry.

They have been warned in no uncertain terms to stop pressurising local hotels to lower prices for 2017 due to the fall in the value of the pound. 

This doesn’t sit with well with the hoteliers who say there are plenty of other foreign markets outside the UK who would be happy to pay premium prices for a taste of Mallorca. 

Hotels have been negotiating a steep price increase of 9 per cent with tour operators, including Thomas Cook and Jet2, but are willing to take their offers to Sweden, France or Italy. 

In turn the tour operators have warned Mallorca’s hotels not to bite the hand that feeds them, accept that they cannot artificially control the market, and be aware that Greece and Turkey are set to be competitive again next year.

Although Spain continues to be the UK’s top destination, Mallorca is more popular in the German market and the Balearic authorities have cultivated new low season tourism from different countries to lessen their reliance on Britain. 

 

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