August Prices Putting People Off Ibiza?

It’s nearly over. If you don’t live on the island then you might not realise that I’m referring to August in Ibiza. If you do then you might share in my sentiment that the busiest month of the year is a marathon not a sprint. A war of attrition on your senses, your mental health and more importantly your patience.

But August 2023 will be remembered differently to many in the past, fluctuating week by week, weekend by weekend. Sometimes ridiculously busy, other times eerily quiet, it was a tough one to call and had many scratching their heads.

August sees a change in dynamic of those arriving. It’s a real mixed bag. The party people and young families all in the same melting pot. The majority of arrivals are from Spain who like to do their own thing, Italians also travel in heavy numbers and they aren’t known for their overspending, It’s a cliche but different nationalities do different things and behave in different ways (except go to the beach). Fortunately Ibiza has something for everyone.

An ever present theme is how expensive Ibiza has become. This can’t be denied but it is still possible to enjoy the White Isle without taking out a 2nd mortgage however if you want to go to world class events and fill you instagram stories living like a rock star then expect to pay accordingly. Once again there’s always a choice.

Flights and hotels have also become especially expensive during the peak season. The airlines did warn us after the pandemic but we were too busy celebrating freedom to take any notice but they have steadily edged up while other destinations such as Turkey and Egypt have managed to keep their package holidays at a more competitive level.

It was reported this week that hotel prices in Ibiza are, on average, the most expensive in the whole of Spain. Family run hotels have been steadily snapped up by chains or concept groups who have invested millions in refurbishing then marketing in a new dynamic way to create new markets. But this is business and the new breed of hotelier need to recoup their investment and the only way to do it is by charging more and focussing on your in-house food and beverage offer to keep guests in and also attract the outside crowd. Not ideal for surrounding businesses.

After all the hundreds of millions spent on these shiny new rooms there will be a few nerves in the hotel trade wondering how far they can realistically push up the prices to get return on investment. The general rule of thumb is if the hotel is still full then carry on edging up prices until you find your level. The market ultimately decides the price.

In general Ibiza shows no real signs of fatigue just yet but that’s not say there isn’t a ceiling. After a variable August there will be a concern that the direction we are going in might marginalise the majority but the numbers for 2023 will reveal that a thirst for Ibiza still remains but it’s coming at an increasing cost.

One of my favourite stories is when chatting to a friend who became annoyed and animated about the way Ibiza is now ‘too expensive’, so I simply said “go to Benidorm then”. His reply was that he didn’t want to go to Benidorm he wants to come to Ibiza. So there you have it although I think the irony was lost on him.

With all the amazing things that Ibiza has to offer the desire to come is as strong as ever. The challenge is to find out how much tourists are willing to pay for the ‘privilege’.