NEWS YOU NEED TO KNOW 4


Morgan hits out at rises of 20% at Spanish hotels


Ben Ireland


Broadway Travel Conference, Albufeira, Portugal


Spanish hoteliers have been warned not to “kill the goose that lays the golden egg” by pushing up prices next summer.


Hugh Morgan, non-executive chairman at Broadway Travel Service, said “greedy” Spanish hoteliers cashing in on record- breaking visitor figures could damage Spain in the long term. Spain was the UK’s top destination in 2016, accounting


for nearly 28% of trips abroad, according to government figures. The traditional Mediterranean


holiday hot spot benefited from a shift west due to terrorism in Turkey, Egypt and Tunisia. “Potentially, prices in Spain


are not sustainable,” Morgan told Broadway’s annual conference in the Algarve. “Suppliers need to be careful not to kill the goose that lays the golden egg. “You can’t control the markets,


but some hoteliers have upped their prices by 15% to 20%. You might call that greedy.” Former Monarch chairman


Morgan, who is executive chairman at Cosmos Tours & Cruises, said price hikes could see people seek better value outside of Spain. Alex Gisbert, chief executive of new beds supplier Fastpayhotels, said big UK operators looking to guarantee bed-stock were being held to ransom by Spanish hotels after a hugely successful 2016. “Anyone who is not giving hotels


the flexibility to set their own rates next summer is going to have fewer rooms,” he said.


“Hotels in Spain are dedicated


to price flexibility. Operators who are not giving hotels flexibility are being stung with really high rates now. It’s altering the dynamics of the market. Hotels don’t know what the markets are going to do, but static rates agreed now take away the possibility of making more money in the future. “Hotels can always bring down high rates through discount, but


they can’t increase static prices.” › Broadway Conference, page 12


The Costa Brava, and inset, Hugh Morgan


5 STORIES HOT


5 Sterling’s slump sees prices rocket


Juliet Dennis juliet.dennis@travelweekly.co.uk


Rising holiday prices caused by the weak pound have prompted concerns about future trading.


Travelzoo this week warned of a “perfect storm”, with the sterling slump and security fears impacting travel to Europe, After polling 2,000 consumers, the deals publisher said a quarter of those planning a break during next week’s school half-term were avoiding Europe.


Travelzoo European president


Richard Singer said: “We have increased pressure on the price of European holidays and two of the key affordable winter-sun destinations, Sharm el-Sheikh and Tunisia, are off the menu.” Industry observers said the component holiday sales sector would feel the pinch before traditional packages, as operators are largely hedged for next summer. Broadway Travel Service chief


operating officer Jill Mitchell warned price rises would have a negative impact. A €2,000 holiday


6 travelweekly.co.uk 20 October 2016


cost £1,818 in October 2016 up from £1,400 in November 2015. Agents warned of price hikes


of 10%-15% for winter 2017 and summer 2018. Midcounties Co-op Travel general manager Alistair Rowland admitted increases could be “hugely painful”. He said: “It will show when hedging catches up. The biggest impact will be on flights because fuel is bought in dollars. Holidaymakers might be priced-out in certain areas.” Great Rail Journeys chief


executive Peter Liney said 2017 could be strong for the trade as


consumers realise prices will be higher still in 2018. Premier Travel director Paul


Waters said demand had increased for all-inclusive holidays this winter and business was already up for summer 2017. “People are buying next summer’s holidays much earlier than before to get the best deals,” he added. Thomas Cook UK managing


director Chris Mottershead said: “The impact of the exchange rate will be felt more down the road. Customers may take a shorter flight or change destinations.”


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