Euro-dollar equality and demand for travel from the US to Europe are directly proportional. The tourism intelligence platform, Mabrian, has analysed this relationship, resulting in a very clear correlation between the two magnitudes. In fact, the rising cost of the European currency leads to a decrease in demand for flights to the continent.
How should hotels deal with euro-dollar equality?
Hospitality companies are spending a large part of their communication investment to promote themselves in the US. US tourists follow similar consumption patterns: spending more, booking in advance, tipping, staying longer and enjoying room service. For this reason, the euro-dollar equality represents a great opportunity for the sector, which is still recovering from two years of pandemic. In contrast, this investment in US-targeted advertising should not be the only strategy that hotels develop. Of course, it is essential to provide good service and add value to the business.
Does the fall of the euro affect the hotel sector in Spain?
The euro-dollar exchange rate directly affects the hotel sector in Spain. Firstly, before the pandemic, the US was one of the most important markets for the Spanish tourism sector. Due to the health crisis, US-Spain travel was severely affected and the number of travellers was significantly reduced. Today, the euro-dollar parity is expected to lead to an accelerated growth in tourism. The number of seats booked on US-Spain flights has already reached 1.4 million, coinciding with the cheapening of flights in the dollar zone. In addition, searches for flights to Spain have increased six-fold since April.
What should we expect in the near future?
The latest studies by Oxford Economics, supported by IMF data from the World Tourism Council, confirm that the future of the hospitality sector is encouraging. The market is expected to revive and recover from the losses due to the pandemic. Growth is steady and the data increasingly supports all these theories.
From a hotelier’s point of view, we recommend that you take into account the euro-dollar exchange rate when conducting your business. Welcoming American tourists will mean a great deal of growth. For this, it is essential to offer a quality service and to differentiate yourself from the competition. Le Room Service offers a varied gastronomic proposal adapted to the needs and tastes of the consumer, a nuance that adds value to the customer experience and, therefore, to the growth of the hotel company.