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German tour operators began to put pressure on Mediterranean hotels, putting the next tourist season in jeopardy

The “difficult negotiation process” between German tour operators and Mediterranean hoteliers started in August and promises to be extremely difficult: the next season is actually at risk. The crisis, due to high inflation, rising energy prices, staff shortages, and rising costs for the remaining staff has led to the fact that hotels in the Mediterranean are forced to sharply increase their selling prices for tour operators. This was announced in the German business and travel magazine fvw. It is in the interests of tour operators to suppress prices as much as possible so that it is easier to sell tour packages, as a result, tour operators have already begun to pressure the hotels in the Mediterranean. However, in general, it is expected that prices for package holidays will increase, and very much – the question is how much…

Hotels in many resort countries of the Mediterranean – Spain, Greece, Italy, Portugal, Turkey, and other major destinations – are talking about price increases and staff shortages. As a result, it is expected that they will “impose high prices on tour operators”, and they will begin to “pressure” the hotels in the Mediterranean. But their victory is risky.

Resort countries are already short of around 400,000 employees, which has led hotels to cut back on revenue-generating activities, including limiting the opening and closing hours of restaurants and bars, and cutting back on spa services. At the same time, Greek Prime Minister Kyriakos Mitsotakis said that tourism should be attractive not only for tourists but also for employees, adding: “For this to happen, wages must increase and working conditions must improve.”

Carolina Catglass, president of the Balearic Association of Hoteliers, said in turn: “We will insist that prices increase by 8-10%. But it will be difficult because of the economic situation in Europe,” she said. The expert also added that the costs of hotels in the Balearic Islands have increased by 25-40%, which in turn makes it impossible to raise staff wages, which, as a result, “washes out” working hands from the tourism sector.

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