As July arrives, many in Spain begin their summer vacations. However, this year’s travelers face higher costs for hotels, gasoline, and tolls.
According to the Observatorio Nacional de Turismo Emisor (ObservaTUR), 29% of people planning to travel this summer will do so in July.
Accommodation Costs Surge
Accommodation expenses have increased significantly compared to 2023. Data from the Instituto Nacional de Estadística (INE) reveals that hotel prices in May were 8.1% higher than the previous year, averaging 112 euros per night. This upward trend is expected to continue through August, making last-minute bookings even more expensive.
Alternative accommodations, such as campsites and rural lodgings, have also seen price hikes. Campsite prices rose by 3.9%, and rural accommodations by 2.9%. Tourist apartment rentals saw the highest increase, with beachfront apartments now costing an average of 1,160 euros, a 9.95% rise from last summer. In popular destinations like Ibiza and Puerto Banús, weekly rental costs can exceed 3,000 euros.
Our city of Valencia will offer the most expensive holiday period ever this summer. Renting an apartment for a month on the beaches of Valencia now averages 3,100 euros. On the Costa Blanca, a popular destination for families from Valencia, the cost rises to 3,700 euros.
Due to these high prices, many people are opting to rent for just a week, which still costs around 800 euros. Over the past decade, the price of renting an apartment in July has increased by 79.40% in Valencia and 76.53% on the Costa Blanca, according to a report by the real estate platform Pisos.com
Increased Fuel Prices
Travelers driving to their destinations will also face higher fuel costs. After two months of declining prices, both diesel and gasoline prices have increased.
According to the European Union’s Oil Bulletin, the price of a liter of 95-octane gasoline is now 1.616 euros, a 1.13% increase from the same time last year. Diesel prices have also risen by 2%, now at 1.47 euros per liter.
Higher Toll Charges
In addition to fuel costs, toll charges have increased. The Spanish government revised toll rates in January, resulting in increases between 5% and 6.65% for state-owned highways. Affected roads include the AP-46 (Málaga), AP-51 (Ávila-Villacastín), and AP-9 (Ferrol-Tui), among others.
Discounts on Public Transport
On a positive note, younger travelers can benefit from discounts on public transport. The Spanish government’s Verano Joven program offers discounts of up to 90% on bus and train tickets for travelers aged 18 to 30, from July 1 to September 30. This includes discounts on Media Distancia, AVE, and Interrail tickets.
Cheaper International Flights
Those planning international flights will find some relief, as ticket prices have decreased. INE data shows that international flights are 7.5% cheaper than last year. In contrast, domestic flight prices have remained relatively stable, increasing by only 0.8%.
Rising Restaurant Prices
Dining out this summer will also be more expensive. Restaurant, café, and nightclub prices have increased by 4.8% since May 2023. Fast food and takeaway services have seen a 5.3% rise.
Stable Supermarket Prices
While restaurant prices have surged, supermarket prices have remained more stable. The price of basic food items like olive oil and fruit has risen significantly, but other summer staples like beer and ice cream have seen only modest increases.
Seasonal Sales
Summer is also synonymous with sales. Starting July 1, many brands offer discounts, particularly on clothing and footwear. Women’s and children’s clothing prices have increased by 1.2% and 1.7%, respectively, while men’s clothing prices have remained stable.
Electricity Costs
Using air conditioning this summer will be less burdensome on the budget. Electricity prices have decreased compared to last year, dropping from 93.02 euros per megawatt-hour in June 2023 to just over 45 euros/MWh in June 2024. Starting July 1, 2024, VAT on electricity drops from 21 percent to 10 percent. This is good news as the country is experiencing its hottest year in history.
Telecommunications
Despite increased mobile data usage during vacations, the cost of mobile services has only risen by 2.4% over the past year.
Mortgage Relief
For those with variable-rate mortgages, there is some relief as well. The Euribor index, a reference for most variable-rate mortgages in Spain, has decreased for three consecutive months, promising lower monthly payments for many homeowners.
