Some five-star hotels in the main tourist resorts are bringing their prices down by as much as 50%. They are concerned about falling demand this summer and lowering prices to four-star rates. At the most extreme, a room that cost 300 euros per day last summer is now 150 euros.
In Playa de Palma it is said that the normal prices can't be supported because of lower demand and that four-star hotels are bringing their prices down as well. Parts of the hotel sector have therefore entered a price war with competing destinations like Turkey. While there has been plenty of talk about British and German holidaymakers switching to these other destinations, there is also concern about the Scandinavian; the value of the Swedish krona against the euro has fallen significantly.
The airports authority Aena is forecasting a decrease in June passenger numbers of five per cent. Some airlines have rescheduled flights for Turkey and Egypt. There is still an expectation, however, that there will be sufficient demand for flights to Majorca during the rest of the summer.