Earlier this year at Hotel Data: Global Edition, we presented an occupancy update on books for the Barcelona and Balearic Islands markets. Fast forward to the latest 365 day outlook (as of June 7, 2021), and we still see a mixed picture but with some improvement for these two key hotel markets in the Mediterranean region.
Barcelona have been hit hard by the absence of their usual demand drivers, such as international travel and events. In March, we saw peaks in occupancy at larger hotels in the books around events such as Mobile World Congress 2021 in late June and Seafood Expo 2021 in September. The two events either moved to a hybrid format or were postponed, and as of June 7, those peak hotel occupancies fell flat. On a more positive note, the summer months of July and August 2021 tend to be higher than in March. Looking ahead to 2022, the book occupancy rate increases in February, the Mobile World Congress is expected to return to its usual place around the end of February and a technology exhibition organized in early February.
As of March 1, 2021, the occupancy rate of hotels in the Balearic Islands books gradually increased towards the summer months. However, as the decline towards the beginning of July shows, there was a lack of confidence in booking long term travel with the uncertainty surrounding the restrictions. Times remain tight, but the outlook for the Balearics has changed slightly since then, and the occupation on the books looks healthier, reaching almost 30% for the summer months. The occupation of books ends around October at the end of the summer season.
The Balearics are one to watch over the next few weeks, as the UK’s announcement to add the islands to its travel green list was significant. However, to curb the threat of the ascending delta variant, the Spanish government quickly responded by adding new quarantine and vaccination requirements for entry into Spain. If some of those restrictions on travel to the islands were relaxed, the market might benefit from being on this currently exclusive green list of countries.
For more information on our book data occupation, see Before STAR
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