Steve Heapy:  Price now determines destination choice – A concern for Spanish hotels

Travellers are increasingly choosing a destination based on price, according to Jet2 boss Steve Heapy, which could spell trouble for Spain’s hotel sector.

Speaking at a roundtable event at the Spanish embassy in London, Heapy pointed out that hotels have seen a significant increase in operating costs over the past three years, especially in staff, food, and energy, leading to a corresponding increase in room prices.

“The cost of accommodation in hotels has increased by 30% in the last three years, while our customers’ wages have not increased in line. Price is becoming increasingly important,” he noted.

At the same time, Heapy linked last year’s protests against mass tourism in Spain to the lack of affordable housing for permanent residents, which is also affecting hotel operations.

“Many hotels are struggling to find staff because the cost of accommodation is prohibitive,” he explained, adding that some hotels are converting old apartment complexes into accommodation for their staff.

Understaffing could have an impact on the quality of services provided, the Jet2 boss warned.

“I wouldn’t want Spain to be seen as a destination that is losing quality,” he said, but he was pleased that politicians were actively addressing the industry’s problems.

According to Heapy, the quality gap between Spain and destinations such as Turkey or other non-EU countries has narrowed significantly in recent years.

For his part, the mayor of San Bartolomé de Tirajana (Canary Islands), Marco Pérez, argued that hotels in the area are not facing serious recruitment problems, but noted that employees are now seeking a better work-life balance.

“We follow European safety standards. When you offer services that comply with the law, you have to pay the corresponding cost,” he stressed.

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