In France, but also in the United Kingdom, Portugal and Spain, inflation is so high that it is absorbing the rising price of hotel rooms. As a result, despite rate increases, many hotel stays are now cheaper than before the pandemic. However, this is not the case throughout Europe. By Travel + Leisure
How inflation is affecting the hotel prices in Europe
Are hotel stays more expensive than before the pandemic, an atypical period that completely froze all tourist activity? According to an analytical study conducted by the data firm Mabrian, the increase in hotel prices in France compared to 2019 has mainly concerned five-star establishments, hitting +20 percent.
Respectively, rates for three- and four-star hotels rose by 2 percent and 5 percent. At the same time, the study looked at the rate of inflation between July 2019 and June 2022 to see if a night in a hotel now really costs us more. With inflation estimated at 7.83 percent, the answer is no for French three- and four-star establishments. This is also the case for all hotel categories in Spain, where inflation is 13.55 percent.
In the United Kingdom, the phenomenon is further compounded by a fall in rates in the four- and five-star hotel categories (by 1 percent and 12 percent respectively). In Portugal, the increase in four-star hotel prices has remained below inflation, while three-star prices have even fallen. In Italy, the opposite effect is seen. When inflation is taken into account, at 9.12 percent, it is the most luxurious establishments (four and five stars) that are less expensive compared to 2019. On the other hand, Italy’s three-star hotels show a 27 percent increase in rates, far exceeding the inflation benchmark.
Greece is the exception
However, not all European destinations are seeing this effect. Hotel stays in Greece are indeed much more expensive than in the past. Five-star hotel rates have skyrocketed by 134 percent. The increase is estimated at 82 percent for four-star establishments and +31 percent for three-star hotels. Meanwhile, between 2019 and 2022, inflation in the country is estimated at 6.87 percent. As such, Greece is perhaps not the best option for a cheap hotel break in summer 2022.
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