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Traditional business model is history, Spain tells industry
WTM Special Report: Spain has described the traditional holiday market as “history” after admitting package holidays have been in decline for years.
Secretary of state for tourism and trade Pedro Mejia Gomez said the entire industry is changing with technology, low cost carriers and changing customer behaviour the main drivers.
But he insisted Spain remained as popular as ever with visitor numbers still on the increase.
He added the country offered superior value for money and a higher quality service than its Mediterranean rivals.
“We’ve been seeing for the last three or four years a decline in the package market and we face more competition as countries see that tourism is a good tool to increase wealth, income and employment,” Gomez told TravelMole.
“It would be a serious situation if Spain was receiving less tourists and revenues but we are not seeing that. Packages are steadily declining one year after another but arrivals and revenues are continuing to show a moderate increase.”
Figures produced by the Spanish Tourist Office show 16.3 million Brits visited Spain in 2004, almost 3% more than 2003. Arrivals up until September – 12.8 million – are 2.8% ahead of the corresponding figure last year.
The figures also suggest an expansion in the number of short breaks. While more Brits headed to Spain, total beds nights in 2004 fell 3.5% to 42.8 million.
Gomez said tour operators have begun to offer new product and a greater degree of flexibility through dynamic packaging.
“New distribution channels have taken a leap forward and of course we have the low cost carriers,” he said. “In the past with the package market we have been able to look six or seven months ahead but that is history. We all have to learn to live with the new model.”
Some hoteliers will inevitably “be left behind” as they are forced to adopt new distribution channels, he added.
Gomez said one of the trends in recent seasons has seen fewer holidaymakers venture to the Canaries and Balearics in favour of the mainland, with Andalucia and Catalonia increasing in popularity.
Report by Steve Jones
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