The slump in the travel market has certainly affected Spain, which is among the top leisure destinations in Europe. Both foreign travel to Spain and domestic excursions within the country have suffered as a result of the global recession, with travel industry research firm PhoCusWright putting the decline at 12 percent for 2009. The traditional booking channels were hurt more than the online travel agencies, though, which only saw a 1 percent decline in the action. This is a bit of a shock, the research team reports, because the Spanish market has a lower rate of penetration for travel than other countries in Europe.
“While all travel segments contributed to the total market’s decline, each travel industry vertical has experienced varying levels of consumer pullback,” says Carroll Rheem, PhoCusWright director, research. “Car rental and hotel companies, particularly in Spanish cities like Madrid and Barcelona, have experienced some of the sharpest declines.”
The hotel industry in Spain had its worst drop in decades, losing 7 percent in 2008 and 9 percent more in 2009. International visitors, especially from the United Kingdom, plunged, and domestic tourism was squeezed, too. Excess capacity made the situation worse for the hotel business, as new properties hitting the market in 2008 upped the number of rooms to be filled by 3 percent.
Unlike many European markets, low-cost carriers did not post the market share gains against traditional carriers seen other markets. Both airline sectors suffered declines in demand due to both the travel slump and competition from high-speed domestic rail companies.
Online travel agencies, on the other hand, fared much better. They posted a revenue growth rate of 2.7 percent, with packaging becoming an increasingly lucrative service. PhoCusWright basically indicates that this is “a bright spot in the currently bleak Spanish travel landscape.”