The tourism industry in Italy has been experiencing a major shift in booking practices, impacting tour operators like Perillo Tours. Changes in hotel policies are leading to tour operators being “kicked out” of hotels they have long-standing relationships with, forcing them to seek alternative accommodations for their groups. This shift is primarily a result of hotels focusing on direct, FIT bookings instead of holding rooms for tour operators like Perillo Tours.
Steve Perillo, CEO of Perillo Tours, attributes this change in hotel behavior to the residual effects of the pandemic. The sudden loss of revenue during the pandemic led hotels to reevaluate their booking strategies. As travel demand surged post-pandemic, hotels sought to recoup their losses by charging higher rates for direct bookings, sidelining tour operators in the process. This has left tour operators like Perillo Tours with fewer options and the need to find other accommodations for their groups.
Sky-high hotel rates have become the norm in the post-pandemic travel landscape, with Europe experiencing significant price growth. According to Lighthouse, a data intelligence company for the hospitality industry, European hotel pricing saw an 11% year-over-year rate growth in the first half of the year, followed by a 10% increase in the second half. This surge in pricing has made it challenging for tour operators to secure affordable accommodations for their clients.
While Steve Perillo believes that the higher rates and the shift away from group bookings by hotels are temporary measures, they are currently impacting tour operations. Perillo Tours has had to make adjustments by offering fewer hotels in some destinations and accepting bookings at hotels that may not align with their usual standards. This has led to a compromise in the quality of accommodations offered to tour groups, impacting the overall guest experience.
In response to these changes, Perillo Tours is working on pricing 2025 tours and expanding its portfolio of four- and five-star hotels in Italy. The company is exploring different hotel options to provide a range of choices for travelers, including three-star hotels like the Hotel Isabella. Despite these adjustments, the impact on the guest experience has been minimal, as tour itineraries are packed with activities, leaving little time for guests to dwell on accommodation changes.
The shifting hotel booking practices in Italy are presenting challenges for tour operators like Perillo Tours. While the current situation may be temporary, it highlights the need for tour operators to be adaptable and resourceful in finding suitable accommodations for their clients. As the tourism landscape continues to evolve, tour operators will need to stay vigilant and responsive to changes in hotel policies to ensure a seamless travel experience for their guests.