The outlook for tourism in Greece in 2023 is a two-sided picture, based on the first data on next year’s bookings from large and small hotel groups, as well as surveys on Europeans’ time travel intentions amid inflation and energy instability. In any case, however, Greece remains in the top five options for Europeans for 2023 as well.

In particular, major Greek hotel chains aiming for higher revenues are already aware of increased demand for the 2023 summer season, and at a stronger level than that seen in the corresponding period of 2019, i.e. before the start of the pandemic. pandemic. In fact, the demand for these luxury developments, most of which offer upgraded infrastructure and services, is so strong that management prefers to keep an increased percentage of its capacity vacant in order to retain the ability to make them available at even higher prices. from free platforms, not through packages. In other words, while the prices listed today by major travel agencies for 2023 are increased and available to cover the offer, Greek businessmen prefer to leave a significant number of rooms empty in order to optimize their operation later. “This decision comes after this year’s experience, which showed that those who adopted such tactics managed to get much higher prices as summer approached. On the contrary, four- and mostly three-star hotels, and many more even lower category hotels, face a serious negotiating problem, both in terms of prices and in terms of the number of rooms they can provide,” sources say. market. K”. This is because pressure on the disposable income of middle- and low-income travelers across Europe due to inflation and possibly heating costs is undermining demand in this market, both at the level of vacation duration and travel budget. But the pressure on these Greek businesses in the smaller capacity and hospitality category is putting much more pressure on their gross margins, which could now also turn into a negative, i.e. unprofitable, level. However, the picture is not much different from what it was this year, when the high end of the market showed record performance, in contrast to a large number of lower-end properties. As explained to “K” in Greek tourism business circles, these trends are leading to further concentration in the sector, as large groups can find a window for acquisitions, and smaller companies try to avoid loss-making activities.

Greece remains in the top five for Europeans next year as well.

In any case, Greece is recovering faster than the rest of the world, even outpacing its main competitors in the Mediterranean. In particular, Greece attracted 88% of tourists in 2019 between January and July, compared to 85% in the Mediterranean and 57% globally, according to a study by the National Bank’s Office of Economic Analysis. Thus, it managed to increase its share in the Mediterranean to 19% in the first 7 months of 2022, compared to 17% in 2019 (and 13% in 2013). Greece’s lead was felt mainly in the summer months, as it was the only country in Europe to record a positive increase in flights compared to 2019.

The trend shows resilience despite the crisis, based on research conducted in recent weeks by Mindhaus on behalf of the European Tourism Commission (ETC) on a sample of 100,000 European travelers who ranked Greece among the top five destinations they visit more frequently. Despite increasing concerns, sentiment for international travel within Europe is at its highest level since the start of this survey (September 2020), +7% from exactly one year ago, and now preference for travel to urban destinations is also rebounding. slightly, +5% compared to the same period in 2021, reveals “K” the head of Mindhaus Theophilos Kyratsoulis. And while Europeans are now deeply concerned about their finances, they are taking a wait-and-see approach and seem to be keeping their autumn and winter travel budgets at almost the same level as a year ago. On the contrary, “the bulk of Europeans say that they will make a maximum of two trips by March 2023, which will significantly reduce their duration compared to the corresponding period (October-March) 2021.” Both will put additional pressure on the revenue and profitability of the 12-month hotel divisions. However, “it should not be forgotten that last year travel restrictions prevented all that intent from turning into real demand, which we do not expect this year as people travel freely,” Mindhouse notes.