Spanish hotel federations, meeting in Madrid yesterday, said that they are having to reduce room rates because of the average ten per cent drop in bookings. Sources for the association of Spanish resort hotels, Zontur, said that the decision by tour operators and travel agents to reduce their prices by at least 25 per cent has also forced hoteliers to follow suit. Hotel federations said that very few hotel guests are paying top rates and hoteliers are dropping their prices to try and revive the market, both in the domestic and overseas markets. In Spain, holiday prices have also fallen and domestic tour operators are starting to slash the prices of their package holidays to both Spanish destinations and abroad. Package holidays prices have already fallen below last year's prices and may continue to fall as Spanish tour operators try to find their market.


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