Palladium Hotel Group has noticed guests are booking shorter durations so they can still afford a luxury holiday despite the rising cost of living.
Commercial Director Nacho Gozalbo said Palladium has seen a fall in the average length of stay but a ‘huge’ trend towards luxury all-inclusive holidays, resulting in growth for the group’s luxury brand TRS.
“The British have always loved all-inclusives and now even more with the cost of living crisis because it offers great value but keeps the quality of the holiday,” said Nacho.
The UK is Palladium’s biggest international market, accounting for 22% of its global customers. In Europe, almost one in three of its guests are from the UK. Almost 40% of its bookings are via travel agents, who Nacho Gozalbo described as ‘a key source market’.
“We always like to present our product first to agents because they are great amplifiers of our product,” he said.
Overall, he said 2023 has been ‘a great year’ for the Palladium Group, despite inflationary pressures having an impact on prices.
It bettered its 2022 performance, he said, with occupancy levels of 74% globally and 83% in the summer in Europe, which was two percentage points up year-on-year.
In June, the group took over the 45 Times Square hotel, which will become one of its Only YOU city hotels, and it will open another in Seville early next year and one in Venice in 2025.