Santorini Is a victim of its own success
In the past week, we have seen a growth in requests and bookings throughout Greece as the cancellations are now reduced to a point of positive booking balance. This growth is mainly in Resort destinations as major markets like Germany and Italy have shown signs that this summer is not completely dead. Santorini is not showing that beat at least not the majority of the destination.
In 2019 when you search Santorini through the major OTAs for a last-minute booking what you could find was the expensive private pool suites that were priced over 1,200 per night and some classic rooms that were not in the villages of the Caldera. Today you have a great hotel choice from the famous Canaves Oia to the brand new Aeifos Boutique Hotel all available to receive bookings. Prices haven’t really dropped but there is plenty of availability. So why aren’t bookings coming in like the rest of Greece?
In order to understand the high price of Santorini, one must think of the destination as a bucket list one like New York, Paris, or Rome. The Santorini volcano eruption has created a unique setting where visitors have the chance to stay on the edge of a crater that is filled with water, pretty fascinating right? It’s a must experience for many visitors in Greece and especially the ones who travel from long haul countries. The demand for Santorini grows as the demand for any European travel grows.
For the past 5 years Greece has become a must destination for both visitors from North and South America and Asia. These long haul travelers are in a must-see bucket list mode and where would you go if not for the famous Santorini, the classic Athens and the cosmopolitan Mykonos. This created a nonstop demand especially for the top of the list volcanic island. With every hotel opening, no hotel was affected as the demand was growing and growing. The same growth was noticed in Athens and Mykonos but rates were kept in the same levels.
As the 2020 pandemic hit the 3 destinations were the ones that were most hit just because the bucket list was put aside for a year or two and it’s hard to plan a trip of a lifetime, last minute. People would most likely take a shorter and closer to home trip. As soon as the borders opened the Europeans were looking for a place to go on holiday and forget the recent lockdown but Santorini is not the first thing in their mind. Call it brand but the island has a reputation of being expensive and overcrowded, both not appealing especially during a crisis was the last thing you want to do is get into a crowded destination. Santorini is not a popular destination for the Europeans due to the high prices and the lack of beaches and it’s not the first thing that comes into their mind as they go through the booking process.
The majority of Santorini hotels were used to not get bothered with room sales as guests were knocking their door but now they must try something different as the demand is non-existent. The OTAs are not helping as they simply search results to a destination and specialist Travel Agents were handling US and Asian guests who are not allowed to travel to Greece. So they wait and the bookings show no pulse. Santorini is not used to chasing the booking but the destination must understand that it’s the best island in the world and the opportunities are there to grasps. Think like the neighborhood Cyclades hotels and the commercial bigger islands and adjusted to the product. Set your own rules but diversify and open distribution as much as possible.
Most importantly, never close doors as bad years happen and Santorini will always be a top bucket list destination.
