During the COVID-19 pandemic, many Israelis filled the various guest houses and villas throughout the country. This style of resort continues to this day, but many owners of villas and bed and breakfasts report a significant drop in demand, which has also led to lower prices.
If you have not yet closed a vacation for the coming summer and the prices of hotels and flights are high for you, know that the various bed and breakfasts admit: "We are forced to lower prices due to low demand."
Ben Vanunu, owner of the Alta Galilea Villas chain, said that according to an examination carried out by the company, for the first time in a decade, the prices of villas and bed and breakfasts also dropped by 30% compared to the previous year, mainly for customers who register early. "From time immemorial, data indicate that the middle classes consume about 90% of the vacation products in the market, so the dramatic decline in demand for vacations at regular prices has forced all concerned to lower prices. Add to this fact the increase in interest rates and high inflation, which has led to a decline in demand."
He said the chain decided to adapt to the market, lowering midweek prices during July, "with additional benefits for our guests and without compromising the quality of service and our high level."
Alta Galilea Villa, Photo: Arnold Barr
We heard similar things from Iris Ben Zaken, owner of the Princess Estate: "The decline in demand is clearly visible in a variety of villas and bed and breakfasts throughout the country. With such high inflation and total uncertainty, Israelis think about every shekel they spend out of pocket. We are at the beginning of summer and the situation is relatively bearable, but it is scary to think what will happen in the industry from the beginning of September or during the winter. The bed and breakfasts will be completely empty in the middle of the week and also on weekends."
Hannah Ben Zaken, CEO of Nani Tzipora Bed & Breakfast, added: "Market conditions force everyone to compete for the customer's heart. I see how the guest houses follow each other and adapt themselves to market prices, and on the other hand – they all compete for the hearts of customers, so that they will prefer them over another zimmer."
It is important to emphasize that the various travel agencies are also reporting a weaker than expected summer. In conversations we have had with travel agents and suppliers, they admit that demand is lower than expected, so you can see deals on the various sites at lower prices than it seemed for the current dates a few months ago.
Zimmer Tzipora, Photo: Tehila Rotem-Kaiserman
Wrong? We'll fix it! If you find a mistake in the article, please share with us