Demand for Greek tourism product, estimates for economic growth in European countries, ‘tourist tanks’ for Greece, climate change, and the future of short-term leases (Airbnb) in line with the rules of operation of online booking platforms (Booking.com), are the critical factors for the profitability of hotel companies in 2019 and 2020.
As the president of the Panhellenic Federation of Hoteliers Gregory Tassios explained to Athens-Macedonian News Agency, this year is already running at a 10% to 15% drop in overnight stay rates across all regions, undermining this year’s revenue effect. Despite the positive signs of September and October, the year is lost in revenue. Mr. Tassios emphasized that prices and contracts with international tour operators are already 20% lower than in 2018. At the same time, the sustainability rate is pushing the hotel business more because of high insurance contributions, but also the current situation in the banking system which does not favor the rationalization of the obligations of hotel companies.
Against this background, Mr. Tassios argued, hotel companies will be at a disadvantage in negotiating with tour operators for the 2020 season, as international tourist agents will not increase their contracts and Greek businesses will remain stuck at -20% in 2019 compared to 2018. The positive fact in these first signs for bookings in the year 2020 is the advance payments given to Greek hoteliers, which essentially help them to meet their obligations, he said.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report
