Distribución y Revenue Management

🚂 SNCF, the French train operator, as of this past Monday, penalizes passengers carrying more than two bags on high-speed trains; previously, there was no strict bag limit as long as passengers could carry their luggage themselves. Contrastingly, in Spain, Renfe allows three substantially sized items per passenger, with minimal enforcement. Budget train services like Avlo and airlines such as Ryanair impose stricter limits, charging extra for baggage beyond a small backpack or cabin-sized suitcase. Ouigo and Iryo also impose baggage limitations correlated to ticket prices. These train luggage policy changes have not faced the same social opposition as in the aviation sector.

🏨 In Mallorca, the former head of the Hotel Federation highlighted the issue of supply management in the hospitality sector rather than demand, emphasizing the need for quality and reinvestment. Stating that for over fifteen years, little to no action has been taken, he argues that high prices due to low supply and the importance of offering high-quality accommodations are key to the region's tourism success.

💰 June 2024 saw a 9.1% rise in global passenger demand from June 2023, led by a 12.3% increase in international travel. Seat capacity in 2024 surpassed 2019 levels by 3%, with a 6% growth from 2023, hinting at a continued uptrend. Global hotel occupancy neared 70% by mid-2024, reflecting business travel recovery, despite a slight drop in average room rates to $182. Car rental daily rates decreased by 26% to $54. Europe's flights stagnated with a 6% reduction from 2019, and economy fares rose by 13%, while business class increased by 5%.

✈ Aena plans to invest €5 billion in Spanish airport expansions and renovations. Barcelona's T1 to receive €702 million for remodel, not capacity expansion. Barajas to get €2.4 billion for T4 and T4S expansions, aiming for 90 million annual passengers by 2031. Palma de Mallorca's €559 million upgrade began in 2022, targeting completion in three years. Tenerife Sur, Norte, and Lanzarote airports to see €300 million, €190 million, and €140 million investments, respectively. Valencia and Alicante airports to be expanded with €400 million and €600 million, as they near capacity, with Alicante’s traffic up by 19.2% to 15.7 million in 2023.

🏨 Belagua 2013, led by Antonio Catalán, operates AC Hotels in Spain, Italy, and Portugal, reported €243 million in revenue and €27 million in net profit according to the Registro Mercantil. In 2023, hotel revenue grew by 30% from the previous year, surpassing pre-pandemic figures, with €1.4 million increase in net profits. Operating income was €40 million in 2023, nearly tripling from €14 million in 2022. Long-term debt stood at €162 million, with short-term debt at €20 million. The company had 64 hotels, with plans to invest €100 million in 10 hotels in 2024, aiming to become the largest manager of Marriott International's 30+ brands in Europe.

🏡 Guia Michelin 2024 awarded Michelin Keys to hotels in Mexico, including 3 hotels with three Keys, 21 with two Keys, and 63 with one Key. The top honorees were One&Only Mandarina in Tepic-Puerto Vallarta, Hotel Esencia in Playa del Carmen, and Xinalani Hotel Boutique in Quimixto, Puerto Vallarta. The guide features over 5,000 hotels worldwide, judged in five categories: architecture and design, service quality, personality, value, and contribution to guest experience.

🏖️ Tui España, benefiting from the fall of German giant FTI, has grown in the Canary Islands and Turkey. Ian Livesey, Tui's COO for Baleares, Peninsula, Andorra, Laponia, and Iceland, stated that their main business in Spain is in the Canaries with increased passenger numbers. In Turkey, despite high inflation of over 70%, Tui has gained strength. Mallorca competes with Antalya as top destinations for German tourists. British tourism continues to drive numbers in Baleares, with Tui's largest market in Ibiza and Menorca being British and German in Mallorca.

🏨 The "hotel Trafalgar" in Madrid's Chamberí district, previously owned by Orinoquia Capital and managed by Welcomer Group as HomeArt Apartments Chamberi, was acquired by a national family office. The building at Trafalgar 35, with 2,000 square meters, 31 apartments, and common areas, will continue as tourist rentals due to its profitability. The sale was advised by consulting firm Catella. Edric Capriles of Orinoquia led a complete overhaul, repositioning the asset for short and medium-term lodging, responding to current investor interest and user preferences.

🚢 CroisiEurope, Europe's leading river cruise company, offers an all-inclusive package this autumn/winter season with free onboard Wi-Fi and port fees. Notable itineraries include the 5-day "Capitals of the Danube" from Madrid with November discounts up to €246 and excursions, and the picturesque Alsace cruise priced at €1,212 for adults and €567 for children, featuring an optional Europa-Park excursion. Mediterranean beauty cruises from Barcelona offer 20% discounts for children, with babies free, and excursions at each destination. Canaries cruise departs on December 7, 2024, and January 18, 2025, and the Naples, Amalfi Coast, and Sicily cruise sets sail on February 12, 2025. All cruises include full board with French cuisine, gala dinner, welcome cocktail, and onboard entertainment.

🏖 TUI Group, Europe's tourism giant, targets LATAM market expansion with a new platform selling holiday packages, leveraging local partnerships. The initiative builds on TUI's technology and the Spain & Portugal team's expertise to drive significant regional growth. Collaborations with travel agencies in Argentina, Mexico, Uruguay, and Colombia have been established, focusing on tailored LATAM customer experiences. Sebastian Ebel, CEO of TUI Group, sees LATAM as a substantial growth opportunity, served by digital platforms ready to meet rising demand. TUI Spain & Portugal has seen promising growth, creating products for LATAM and launching a digital platform offering a range of predefined packages and dynamic itinerary creation. Preferred destinations include Asia, North America, and Northern Europe, with TUI's own river cruises in Germany.