Tourists at Palma Airport. | Teresa Ayuga

Hotels in Mallorca are forecast to be at least 65% full between May and October this year, but Hoteliers say there won’t be any summer deals on offer in European source markets.

Hoteliers are struggling to cope with the soaring cost of energy, food, beverages and cleaning products and are determined to be in the black at the end of the summer season.

«Hotel operating costs have skyrocketed since March and if companies get into a price war with competitors they will have to take drastic action to make sure they have a healthy balance sheet at the close of the season,» said a Balearic hotel chain spokesperson. «Some of the hotels that opened in February and March ended up in the red, even although Easter was very positive.»

Passenger levels at Palma Airport are almost at pre-pandemic levels, but hoteliers say the numbers are still much lower than forecast.

«The summer season is not going to be as good as predicted, because there are still a lot of places available for May, June, July, August and September,» they explained. «Average occupancy is currently 65% and we can't count on last minute bookings."

"Easter was a mirage and now we are seeing the impact of the competition, but we can’t lower our prices, because the operating costs would exceed our income,» claimed Hoteliers from Platja de Palma, Palmanova-Magalluf, Cala Millor, Platja de Muro, Capdepera, Alcudia-Can Picafort and Cala d’Or.

Bookings may have slowed down a little in the rest of Mallorca, but business is booming in the Balearic capital.

«Occupancy at Boutique hotels in Palma is high, despite minimal discounts," said Asphama President, Javier Vich. «Hoteliers are maintaining their rates, but they are only achieving slight returns. Now we have to wait and see how the European market behaves in the coming months."

Tour operators are trying to pressurise hoteliers into offering discounts, but say they understand that soaring costs make deals highly unlikely.