Many hotels in Santorini are experiencing lower occupancy than in previous years, although the situation varies by season and property. The main reasons include:
- Higher prices: Santorini has become one of Europe’s most expensive destinations, leading many travelers to choose more affordable Greek islands such as Crete, Naxos, Paros, or Milos.
- Overtourism concerns: Media coverage about overcrowding has discouraged some visitors, even though there are quieter periods.
- Earthquake activity: Earlier reports of seismic activity in the Aegean caused some travelers to postpone or cancel trips, especially in the months immediately following the news.
- Global economic pressures: Inflation and higher airfares have reduced long-haul travel from markets such as the U.S. and Asia.
- Increased competition: More luxury destinations around the Mediterranean are competing for the same travelers, including Croatia, southern Italy, Turkey, and Montenegro.
This has led many Santorini hotels to:
- Offer discounts or free upgrades.
- Include complimentary airport or port transfers.
- Add perks such as free breakfast, spa credits, or flexible cancellation policies.
For luxury travel companies like Travealz, this can actually be an opportunity to negotiate better rates and exclusive packages with hotels than would have been possible during the peak-demand years.
And how to overcome
To increase occupancy, Santorini hotels need to focus on value, seasonality, and market diversification rather than relying solely on the island’s reputation. Some of the most effective strategies are:
- Adjust pricing intelligently instead of maintaining peak-season rates year-round. Dynamic pricing and attractive shoulder-season offers can stimulate demand.
- Create value-added packages, such as:
- Stay 3, Pay 2
- Free airport or port transfers
- Daily breakfast and one dinner
- Sunset cruise or winery tour included
- Spa credits or room upgrades
- Promote the shoulder season (April–May and September–November), when the weather is still excellent but crowds are smaller.
- Target new markets, including travelers from the U.S., Canada, the Gulf countries, India, and Southeast Asia, rather than relying heavily on traditional European markets.
- Work with luxury travel advisors to reach high-value clients who are looking for curated experiences rather than simply the lowest price.
- Partner with travel marketplaces such as Travealz to feature exclusive, limited-time packages. Time-sensitive offers and direct communication with travelers can help hotels stand out without depending solely on large online travel agencies.
- Highlight unique experiences, such as private catamaran cruises, wine tastings, cooking classes, photography tours, and wellness retreats, instead of marketing only the hotel room.
- Strengthen digital marketing by using social media, influencer collaborations, email campaigns, and high-quality video content that showcases authentic experiences.
For luxury hotels, reducing prices significantly can dilute the brand. A better approach is to keep rates relatively stable while increasing the perceived value through complimentary services and exclusive experiences. This protects the hotel’s positioning while making the offer more compelling to guests.
Photo Credit: Giuseppe Dio