Benidorm is one of the main tourist destinations in Spain that has recognition both nationally and internationally. Some people consider that it is a destination to imitate and others think is a destination to avoid. Whatever the point of view, there is no doubt that Benidorm is a mature destination capable of generating a significant demand through the year.

Benidorm is a product of sun and beach, which is complemented by a wide range of leisure and business. It stands out for being a highly competitive destination in terms of value for money, thanks to which many national families could afford holidays during the 1960s, and for being the reference in terms of hotel offer in the region of Valencia and Spain.

In the beginning of its tourist days, Benidorm became a milestone being the first city in Spain to allow the use of bikini on the beaches. This fact, with the characteristics of the destination and the vertical plan that developed the city made Benidorm the destination desired by spanish and international tourists for their holidays or to live.

In recent years, Benidorm’s sun and beach destination has been characterized as a massive and low-quality tourism. Domestic tourists, family and senior tourism, and international tourists, highlighting the senior British market, are predominant in Benidorm. Senior tourism, British and national, is the predominant in the winter months and the reason which has allowed to break with the seasonality of the destination. Benidorm also highlights the young tourists, since they allow and advertise the development of areas with nightclubs and bars that feed this more active tourism.

Briefly analyzing this data destination:

• Benidorm is known for being a British destination. According to INE, between 2014 and 2017, British travelers have increased 38,33%. In 2017, these represented 39,58% of the total number of travelers from Benidorm, being the first market of international travlers and only behind the Spanish travelers.

• The number of passengers and the number of overnight stays has a positive trend in recent years, reaching the 2.075.497 passengers in 2017 (8,63% rather than 2016 and 23,88% more than in 2008) and the 11.664.771 overnight stays (5,64% more than in 2016 and  10,77% more than in 2008).
• In terms of the offer, the destination presents a a great range of tourist offer. In 2017, this offer was composed of 131 hotels and 3 hostels, 8 pension, 7.291 apartments and 11 campsites. The hotel offer was distributed in the following manner: 4 of 5*, 40 4*, 58 3*, 23 2* and 6 1*. Adding a total of 41.096 seats. 66% of the hotels in Benidorm were 3* or lower.
• Despite being a consolidated target, hotel occupancy continues to be very high. In fact, it is one of the destinations with better occupancy in Spain. Hotel occupancy in 2017 was 85,46%, getting in the months of January, February and December a greater than 70% occupation. According to data of Exceltur, the cumulative data from January to September 2018, indicate that the hotel occupancy of Benidorm has been of the 79,30% (2% less than the cumulative data for the same period of the previous year) while the average of Spain is 68.40% (0,70% less) .
• The accumulated ADR indicates that the destination Benidorm is situated below the Spanish average, being the ADR of Benidorm of 80,10€ (5% more than the data accumulated in the same period of 2017) and the average of Spain of 90,30€ (up 2%).

Despite being a successful product, Benidorm has had a large number of criticisms as:

• Low quality tourism: tourism motivated by price and demands constant supply, making it a customer who doesn’t spend a lot.
• It has resulted in an urban overcrowding.
• It is dependent on the British market.

After several projects at the destination, the hotel factory has check that the destination is changing. All entities in the tourism sector, and more specifically related to the hospitality industry, are working to ensure that this consolidated sun and beach destination is repositioning through:

1. 1. The renewal of the offer. Benidorm is investing in the improvement of the facilities and services of the hotels to increase the category of these. In this way, to increase the ADR and attract a new type of customer. Some examples of renewal of the offer are: Barceló Selomar that will entirely change after an investment of 16 million euros and Hotel Río Park Benidorm which will go, after an investment of 8 million euros, from 2 to 4 star hotel. Investment that takes place in Benidorm not only is in the renovation of hotels but also in the construction of new hotels, as the project that will be the of the H10’s chain in front of Playa Poniente consisting of a modern hotel of at least 4 stars.

1. 1. The search for a new type of customer. The intention is to leave behind the low-cost tourist of sun and beach looking for a destination with low prices. This kind of customers are already changing Benidorm as a holiday destination by other cheaper destinations such as Turkey. Therefore, it is important to attract new types of customers and avoid that Benidorm is affected by this. Improving the service of hotels, hotels and the complementary offer it is possible to get a high class tourist.

   2. The offer of new products. Benidorm seeks to attract MICE customer. Hoteliers are betting strongly on that segment, a market with an ascending projection within the tourist industry. Commitment to this type of customer is a smart strategy to improve the seasonal nature of the target, since it is tourism that complements the existing demand in Benidorm during the high season months and, especially in the low season months.

1. The improvement of the tourist attractions. Benidorm has become the first intelligent tourist destination in the world. A tourist destination that is intelligent, as defined by the standard UNE 178501, “is an innovative destination, consolidated on a vanguard technological infrastructure, which guarantee the sustainable development of the territory, accessible to all, which facilitates the interaction and integration of the visitor with the environment and increases the quality of your experience in the destination, and to improve the quality of life of the resident“. This fact stimulates and increases competitiveness through innovative capacity and results in an improvement of the perception of the target.

At the hotel factory we continuously analyze changes and trends occurring in the industry to advise our clients in repositioning and conceptualization projects. If you have any questions or wish to learn more about this new segment, please do not hesitate to contact us.