Hotel price war on the horizon

In an attempt to maintain the recent momentum in the holiday market, Balearic hoteliers are set to cut prices in September and October. Occupancy has picked up in the Balearics, but this month the number of guests is still nearly two percent less than in August last year and while September and October are traditionally quiet months, hoteliers hope that by reducing their rates, the islands will prove an attractive destination for people looking for a late summer break or an Autumn holiday. Leading German tour operator TUI is confident that by the end of the season, 12 percent more tourists will have visited the Balearics than in 1998, although the figure will still be five percent down on last year's “exceptional” season. A spokesperson for TUI said that the German market is recovering because of the bad weather the end of the summer is bringing to Germany and that bookings have increased “considerably” over the past few weeks.