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Greek hoteliers warn over lower occupancy rates, lower prices in 2019

Greek hoteliers warn over lower occupancy rates, lower prices in 2019

The report showed that 31 pct of hoteliers expect lower occupancy rates this year compared with 2018

Hellenic Chamber of Hotels on Thursday issued a warning over the course of Greek hotels, following the release of a report which showed that an increasing number of hotels reported lower occupancy rates and prices in the first quarter of 2019.

The report by ITEP, based on a sample of 1,956 Greek hotels, showed that 45 pct of hotels reported reduced occupancy rates, while 25 pct reported lower prices. A total of 46 pct of seasonal hotels recorded a reduction in pre-bookings while 23 pct lowered their prices for early bookings in order to attract new clients.

More specifically, the report said that 45 pct of year-round hotels reported lower room occupancy rates in the first quarter of 2019, compared with the same period last year, for an average decline of 24 pct. During the same period, one in four hotels (25 pct) lowered their prices by an average of 15 pct. A 46 pct of seasonal hotels said early bookings fell by an average 21 pct, forcing hoteliers to lower their prices (23 pct of hoteliers offered higher discounts).

The report showed that 31 pct of hoteliers expect lower occupancy rates this year compared with 2018 (estimated average decline of around 20 pct), while 21 pct of hoteliers expected an average decline of 13 pct in their prices.

The report said that seasonal hotels were feeling the biggest pressure, with a 43 pct of hoteliers expecting an average decline in occupancy by 16 pct. A 16 pct of hoteliers expect an average reduction of prices by around 13 pct.

Alexandros Vasilikos, president of the Hellenic Chamber of Hotels, said the findings of the report reflected a growing concern of the Chamber and added that any losses in hotels' revenue will have an impact on the Greek economy.

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