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How Greece turns “competitive”: Hoteliers raise prices up to 95%

It is certainly hard to believe your eyes but it is true. Hoteliers in some popular tourist destinations raised their prices this year to even up to 95%. According to hotels search engine trivago.gr, champion in price increase for the month June was Imerovigli village on the island of Santorini where some hoteliers raised their prices to up to 95%.

Imerovigli

June 2014 – Average price per night €501

June 2013 – Average price per night €257

In Athens prices went up at 35% in average

Athens

June 2014 – Average price per night €119

June 2014 – Average price per night €88

The smallest price increase was recorded in Corfu with 2%, followed by Rhodes with 7%.

Across the country hotel prices went up at 21% in the average. In contrast: in countries like Spain, Turkey and Italy, that is countries that are competitive to Greece prices in June 2014 either remained the same or they were decreased.

Countries 

Price comparison June 2013 and June 2014

Greece +21%

Italy  -1%   Spain  0%  Turkey -15%  Cyprus  -4%  Portugal -4%  France  -5%

Tourism, Greece’s so-calledheavy industry” may be doing well this year with the number of tourists expected to arrive at 20 million people, but apparently hoteliers trying to make profit for the losses of the previous years. “Therefore the unjustified price increases,” some Greek media note.

Reports about the exorbitant price increases have allegedly set Prime Minister Antonis Samaras on alert. Antonis Samras contacted the President of the Association of Greek Tourist Enterprises (SETE) and asked him to proceed to necessary controls in order to avoid such pricing phenomena.

An anonymous senior official of SETE told news portal NewsIt.gr:

“The increases follow the law of demand. There are indeed some individual professionals who have procedded in exorbitant increases, the SETE has identified and isolated them. However it is not SETE’s job to undertake controls, but it is the job of the state that has the control mechanisms as well.”

Of course, tourism is a free market operating in a free economy. Everyone can put any price and sell the product. But it is up to the state to regulate the market with hotel categories and price range.

Mykonos: €700 per night without breakfast in D-Category hotel

Last Sunday, newspaper Proto Thema reported from the island of Mykonos that a room in a D Category hotel could cost €700-800 per night without breakfast, a price similar to a luxury hotel in Monte Carlo. Some hotel-owners told the newspaper that they were put under pressure to keep their prices up. “It is the operators and the real estate market who put pressures because then their commission is higher.”

Sleeping in a 5* hotel could cost up to €10,000 per night .

Proto Thema speaks of “maddening prices” on the island, like €40 per day for two sun beds and umbrella at one of the famous beaches, €70-€100 per person for dinner in a good restaurant, €10-€20 for a drink in a bar.

But Mykonos has its own rules…

At the end of the day….

Yet, prices are still cheaper for foreign tourists arriving with vacation packages than for Greeks making individual bookings. Of course.

No, there have been no reports about raising the personnel salaries in the hotels that recorded these price increases…

WARNING: I don’t want to hear any whining and complain by hoteliers at the end of the tourist season!

PS Santorini is famous for its wonderful sunsets, but it can cost you a nice bunch of money to watch a natural phenomenon that has zero euro production cost. HA!

 

 

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11 comments

  1. CompetitivenessAlliance

    Haha, now that the crisis is seen to ‘be over’, some Greeks have already started partying again!
    They need be careful, Greece will never be like 2004-2007 again.
    It will improve definitely from what it is now, but through common sense not euphoria.

  2. I stayed on Mykonos in 1963 fir five months fir a total cost of about 40 GB pounds.

  3. agatha mantanes

    Good luck with that, 6 years past not going to Greece this year ether.

  4. It’s the same sad old story of Greek businessmen’s behavior, particularly in the tourism industry — make a fast buck whenever and wherever you can. I spend most of my time in Chalkidiki. There are indeed some excellent hotels of top quality. But the broad offer reflects a ‘fast-buck-mentality’ — hotels cheaply built and/or not kept in shape; cafés, bars and restaurants of mediocre quality.

    Everyone, also tourists, has some sort of a memory. Be it good or bad, one always remembers when one thinks one has been taken a bit for a ride.

    • keeptalkinggreece

      unfortunately so it is since I remember myself: greedy rooms-to-rent, hoteliers, cafe- & -restaurant owners trying to earn in 3 months the revenues of one year.

      Once in Santorini, we had B&B, breakfast included coffee, bread and butter but we had to pay extra for jam !

      Fail mentality 🙁

  5. I’ve just had a wonderful week in Rhodes with my lady friend. I’m sorry
    say that it was ‘all inclusive’ and had some disparaging remarks from
    a number of Greek business folk as a result.
    I didn’t find that prices for b/b accommodation overly expensive nor was the food expensive whenever we chose to eat out. Well done Rhodes for a
    memorable week of pretty good food,lots of sunshine and little evidence of overpricing.

  6. But this is simply not happening all over Greece! Pelion prices are going down year by year, but here there are many small family run hotels and restaurants and it is perhaps a different sort of tourism that cannot compete with all inclusive luxury resorts. And there is always going to be limit to how low you can put your prices, after all we are running a business for profit, however small, not for charity. It wouldn’t surprise me to see local businesses closing this year, which seems to be the most difficult so far. Crisis over??? Bollocks, it’s just setting in. The new taxation, extra taxes, emergency taxes and the dreaded TEVE , coupled with a drop in Greek tourism (no one has cash to spend) and only a few foreigners either end of summer, mean it’s barely worth opening any more.

    • keeptalkinggreece

      of course, it is not everywhere but mostly in the famous islands that prices are up – but it was always like that there.

  7. also some restaurants/tavernas have increased their prices x3, often having a penciled menu without prices or offering *Special* without price..!