Spain fills May like never before, but average spend stalls
Spain just posted a historic May: 10.26 million foreign tourists, 9.5% more than last year. To put it in perspective, that number already beats the pre-COVID August demand peak. The news, reported by Hosteltur, sounds optimistic... until we look at average spend.
Because here comes the cold shower: average spend per tourist is stalling. Record volume, yes, but visitor value is not growing at the same pace. This worries me as an industry professional. If we fill the streets with tourists who spend the same (or less) than before the pandemic, we are generating congestion without improving profitability for hotels, restaurants and shops.
What does this mean for the industry?
- Hotels and airlines: occupancy rises, but RevPAR and revenue per passenger may suffer if the only game is price competition.
- Destinations: risk of overcrowding with low economic return.
- Revenue managers: time to review yield strategies and hunt for higher-value segments, not just fill rooms.
Demand is there, but the tourist mix is shifting. If we don't get them to spend more, the May record will be a bittersweet victory.
Quick questions
How many tourists did Spain receive in May?
What's happening with average tourist spend?
Why is average spend stagnant in Spain?
How does this affect hotels and airlines?
What do experts recommend to boost average spend?
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