Greece’s performance for Alltours in 2025 was particularly strong, with the tourism season exceeding the German tour operator’s initial forecasts. As Oliver Grosse-Kleimann, Director of Contracts for Greece, told Tornos News, “we are above the projection we had for 2025, with Rhodes, Crete, and Kos showing very good and sustainable growth.” The picture was strong even for smaller islands, leading to “a large double-digit positive result across all of Greece.” The biggest winner of the year, according to him, was Rhodes, followed by Kos and Crete.
However, despite strong demand, Grosse-Kleimann notes a clear shift in traveler behavior: “Prices have increased, and customers are now choosing shorter stays to offset the cost.”
The exceptions: Thessaloniki and Santorini
Thessaloniki, along with the Olympic Riviera and Halkidiki, failed to match the growth seen on the islands. It remained in positive territory, but “not comparable to the other islands,” he says.
The only region with a real decline was Santorini, and this solely due to the winter earthquake sequence. “We lost a significant portion of bookings in January and February,” he notes, although the market recovered partially afterward. At the same time, both Santorini and Mykonos “have been seeing a decline for the past 2–3 years due to high prices.” Indicative of this is that even in July and August, hoteliers were forced to cut prices: “We had discounts of 30% and 40% in Mykonos and Santorini, but also in Crete and Rhodes, especially in five-star hotels.”
“We’ve reached the price ceiling” – The need to differentiate between high and shoulder season
Grosse-Kleimann warns clearly that the strategy of across-the-board price increases cannot continue: “We are now at the limit. If we keep raising prices 2%-5% each year, the high season will become unaffordable.”
He explains that a family of four is now faced with paying “6,000–7,000 euros for 10 days, which is difficult to manage.” The combination of hotel costs and airline fares makes the Greek high season excessively expensive for a large segment of travelers.
He also highlights a structural issue in the market: overinvestment in five-star hotels and government incentives that focused mainly on this category. “We now have far too many five-stars and we are missing four-stars. The state should help four-star hotels renovate, do facelifts, and make small investments.”
2026: A slowdown, with four-star hotels taking the lead
Early bookings for 2026 show a “slight slowdown,” with Grosse-Kleimann noting that “we cannot repeat last year’s increase.” Five-star hotels show signs of fatigue, while “four-stars are performing fantastically and everything is moving upward.”
This trend is reflected in Alltours’ strategy: “We are expanding the 3- and 4-star program to give customers more options in price and services.”
At the same time, the tour operator continues investing in its own Allsun hotels: “We already have four hotels in Crete and one in Rhodes for next season, and we will keep expanding in the four-star category.”
A new five-star Allsun hotel is also on the horizon, smaller and value-for-money: “It will not be ultra-luxury with flashy prices. It will be an affordable five-star with good services and quality without excess.”
Grosse-Kleimann points out that many services offered in high-category hotels are not actually used by guests. “We need to clarify what is truly necessary. There are services customers cannot use, so why should they pay for them?”
Year-round operation in Crete and Athens
Alltours may not be opening new destinations in 2026, but it is investing in year-round operation in Crete (Heraklion) and Athens. The capital already shows growing demand for city trips and combined Athens–beach packages. Expansion in Crete relies on direct flights by Discover Airlines and Aegean: “We are not talking about large numbers, but it is the first step toward year-round destinations,” notes Grosse-Kleimann.
The competition: Turkey, Spain, Egypt
Regarding Turkey, he is clear: “When hotels in Turkey are empty, they cut prices 50%-60% and act like a vacuum cleaner in the high season.” The role of Turkish airlines is also crucial: “The combined strategy with Turkish Airlines, Sun Express, and Pegasus makes the package very cheap.”
Spain is performing at similar levels to Greece, while Egypt attracts a different clientele: “It offers very good services at reasonable prices, but appeals to a specific target group.”
What German travelers want
Grosse-Kleimann explains that there is no longer a single target group, but:
– Families remain strong due to family-friendly hotels.
– Couples make up a significant part of the customer base.
– Adults-only demand is increasing, but caution is needed because “if there are 10 adults-only hotels next to each other, internal competition is created and the market is diluted.”
The big gap in the market lies elsewhere: “We lack infrastructure for sports tourism. The new generation wants cycling, hiking, high-level gyms, not a basement gym.”
At the same time, demand for spa facilities in five-star hotels remains strong. What customers seek, however, is authenticity: “Guests want Greek natural cosmetics, local storytelling, something that connects the spa to the place.”
“We couldn’t have succeeded without our Greek partners”
In closing, Grosse-Kleimann stresses the crucial role of partners in Greece:
“Everything we achieved in recent years would have been impossible without our local partners. We are truly grateful.”
