The Greek accommodations market is expected to face serious losses this summer, as room rates in Athens hotels have dropped by 24 percent this month compared to the levels seen in June of 2019.
According to data gathered from the Trivago Hotel Price Index, hotel rates in Greece during last June averaged 111 euros ($125) per night, with their value now currently pegged at 84 euros ($95).
It is also important to note that in June of 2018, hotel prices surprisingly fared much better compared to subsequent years, with rates reaching 122 euros ($138) at that time.
The trend emerged after Greece experienced an increase in hotel occupancy from 2016 to 2019, setting record numbers and registering positive results for this backbone of the Greek economy. Last year, however, the country reported a slight decrease in hotel business compared to that seen in other Mediterranean countries.
Currently, Greece ranks in the middle of a spectrum measuring price reductions across the seventeen other major European cities represented in the Index. The only cities in which hotel rates remained the same for both June 2019 and 2020 are the large capital cities of Brussels and Paris.
As Greece’s hotel industry struggles to recover from the pandemic, the market is expected to face years of losses. Both occupancy rates and revenues per available room are expected to decrease further within the coming months.
The Trivago Hotel Price Index report also indicated that Madrid, Spain had the largest drop in hotel prices this year, amounting to 44 percent, decreasing from 154 euros ($174) in June of 2019 to 86 euros ($97) in June of 2020.
In contrast, the Turkish capital of Istanbul recorded the smallest decrease, with prices dropping by 19 percent from an already low rate of 66 euros ($74) in June of 2019 to 53 euros ($60) in June of 2020.