- Summer 2022 was the first without restrictions since the pandemic, and Barcelona recovered a good part of its international tourism.
- Hotels filled up and rates exceeded those of 2019, but the recovery came with higher costs for energy, staff and product.
- For restaurants and shops, the great exercise was to raise prices judiciously without losing the local customer.
Summer 2022 was the first without restrictions since the start of the pandemic. Barcelona recovered a good part of its international tourism, with full hotels and rates above those of 2019. For a city in which tourism is an important source of activity, the images of busy streets and terraces were an indicator of normality after two very difficult years.
But the normality had nuances. Visitors were returning and businesses were regaining customers, yet costs were higher than before the pandemic. Each company’s outcome depended on how much what it paid had risen and how much what it charged could rise. Understanding that difference, the margin, is essential to know whether the recovery in sales really translates into a recovery of the business.
A summer without restrictions
After two years marked by limits on mobility, capacity and closures, summer 2022 allowed the city to function normally again. For many businesses, that normality meant at last recovering the activity they had lost. Each business experienced it differently, depending on its location, its clientele and its ability to rebuild its staff.
For employees in the sector, it also meant a return to an intense working pace, with the added difficulty of reorganising workforces that in some cases had shrunk. For residents, it meant visitors being present again in public space, with its advantages and drawbacks. The city breathes tourism, but its impact should be managed in a balanced way and with attention to residents.
A recovery with higher costs
The recovery came with higher costs for everyone: energy, staff and product. Rates above those of 2019 could partly reflect that rise in costs, and businesses that sold more did not always earn more, because every euro of income came with a bigger expense. This applies to hotels, restaurants, shops and services: rising sales are only half the story.
That is why it is important to distinguish between turnover and profit. High hotel occupancy or a full terrace does not by itself guarantee a good result if the cost of each service has risen more than the price. Businesses that survive and prosper are usually those that know their margin precisely by product, by customer and by season, and adjust their offer and prices accordingly. A simple dashboard, with occupancy, average price, cost per service and margin, helps to see whether the business is really growing or merely invoicing more.
Raising prices judiciously
For restaurants and shops, raising prices judiciously without losing the local customer was the great exercise of the year. It is worth knowing the real cost of each product or service, comparing with competitors and communicating changes clearly, to balance margin and the loyalty of those who live in the city. It is also wise to decide what part of the extra profit of the high season is set aside for the slower months.
Not all prices should rise in the same proportion: some products are more sensitive than others, and the regular customer usually values consistency and transparency more than an occasional discount. A well-explained price change, with a clear menu or tariff, creates less friction than a silent rise. And reviewing regularly, not only in high season, avoids abrupt adjustments. And not to forget the local customer, who sustains activity all year round, not just in summer.
Selling more is not enough if the cost of each sale has risen more than the price.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
