2011 Year of the Discounts

Its that time of the year again, when people start to plan their 2011 summer holidays. Ibiza is still a popular destination for tourists, but certain sectors of the industry may struggle to compete this season. The most important factor for Families and most Holidaymakers this year is price sensitivity and value for money. Due to the over inflated clubbing market and its knock on effect to other suppliers, prices have quietly increased in Ibiza over the last few years. There was also a noticeable drop in the level and quality of service, but this trend seems to be on the upgrade as businesses fight for customers in a competitive market once again. The local response to the changing economic situation is to offer the All Inclusive option in many Hotels for 2011. Unfortunately the knock on effect of growth in this sector is the sad demise of the small to medium local businesses, who rely on tourists from hotels spending in their bars and restaurants. 2010 was a bad year for them and with many hanging on by their fingertips, they will not survive 2011 if similar to last season.

My Great Grand Aunt Mystic Mary

Being the seventh son of a seventh son, a kisser of the Blarney Stone and the proud owner of a Crystal Ball inherited from a Grand Aunt who came from a long line of fortune tellers, my predictions for 2011 in Ibiza are as follows;

Sales of High Street Package Holidays to decrease with more buisness migrating to Online and Independent bookings. This will change the landscape of the Ibiza Tourism Industry as customers grow better educated with regard to booking and researching their Holiday. Expect to see lots of Discounts and Late Deals available from High Street Travel operators, as they try to offload unsold packages nearer time of departure. Already trade reports from the High street are not good.

Growth in All Inclusive package. Many Ibiza hotels offer free U12 Kids places on All Inclusive plans if booked directly with their websites. Travel Companies continue to charge for kids on All Inclusive plans when the supplier is providing them free of charge. It wont be long before Holidaymakers realise this and start to book direct.

High end product to continue to perform strongly. The VIP customer is still fit and well with most of their cash deposited in Swiss Bank Accounts and out of the Euro. They will easily ride out this recession and enjoy the added ego massage that their protected cash will undoubtedly bring. Like Big Game Hunters in the Raj, they will be treated with reverence by cash starved locals.

Growth in the low end budget product, as young clubbers try to compensate for lack of disposable income. Accommodation costs will be cut as they protect their cash for Alcohol, Club Tickets and other party related activities. Outlying, poorly located accommodation will suffer as punters base themselves nearer public transport links and Hotels located within walking distance of all the action.

Mambo to Close in 2011?

Death of the small to medium local Tourist bars and restaurants as the All Inclusive tourist stays content in their Hotels with their wallets happily gathering dust at home. Poorly managed hotels and apartment blocks especially in over developed resorts suffering from neglect and old age will close in 2011.

Public Transport and the Airport Bus service will be very popular as Taxi Costs continue to increase and become over priced.

A softening of prices for 2012 as Ibiza wakes up to the recession, suffers tougher austerity measures with further weakening of the Euro as Portugal, Spain and Italy threaten to bring down the Currency.

Sanchez To Loose it 2011?

Music. Live Music, Ibiza Rocks style will increase in popularity. Big name DJ’s will continue to rule the Club scene with David Guetta, SHM and Pacha packing them in once again. After some unremarkable nights, Cocoon has some work to do to retain its pole position as leading minimal Tech night. Amnesia will outshine Privilege which needs to find another big act other than Tiesto to keep up. Space will struggle if they fail to update and prune their faded DJ line ups. The new exclusive Ushuaia Beach Hotel will discount its prices on the back of poor bookings. A well known DJ will have a major breakdown in Ibiza 2011. The West End will regain popularity, as holidaymakers take advantage of cheap drinks, free entry clubs and the growth of fresh, young music bars in that area. Cafe Mambo may be forced to close.