The economic outlook for autumn 2022 and 2023
Inflation and loss of purchasing power, the effects of the war in Ukraine, chaos at the airports, climate change: tourism is facing difficult times again.
How can one prepare for the new challenges? Here are some ideas.
High inflation, the war in Ukraine and uncertainty about gas supplies are factors that are making life more expensive and plunging Europe into a new economic crisis. We have already seen gaps in July and heard that 30% of Spaniards have cancelled their trip due to the loss of purchasing power.
Chaotic conditions at the airports in summer, high prices for flights and rental cars.... How does this affect foreign tourism?
The economic outlook in Europe
We are in times of "stagflation": stagnation of economic growth accompanied by inflation. In order not to get into a wage-price spiral that could lead to "galloping inflation", wages have to be kept "in check" and household purchasing power is falling. Both in Spain and in the rest of Europe.
A 2023 rent increase could turn out to be a shot in the back. I recommend going for smart pricing in the face of new uncertainty and allowing for dynamic adjustment.
Preview for autumn 2022
It can be assumed that the usual level of German tourism cannot be maintained in the months of September and October. They are also feeling the high cost of living in their pockets. There will be movement in the short term, which can be exploited with attractive last-minute offers.
Preview for winter 2022/23
Germany's high dependence on Russian gas has Germans fearing the onset of winter: Will they have enough fuel to heat their homes? At what cost?
This could help demand for long-term rentals in winter.
My recommendations:
Make prices and minimum stays more flexible.
Go for smart pricing and let analysts and algorithms determine the optimal level.
Make attractive early booking discount offers for loyal customers who want to book their dates for summer 2023 already now.
Customise your flat so that it is well air-conditioned during heat waves as well as in the winter months.