The tourism industry in Italy is witnessing a major shift in booking practices, particularly when it comes to accommodations for tour operators. Perillo Tours, a well-known tour operator, has been facing challenges as some hotels in Italy have decided to prioritize direct bookings over group bookings. This change has forced Perillo Tours to seek alternative accommodations for its groups, leading to operational disruptions and adjustments in their tour offerings.
Effects of the Pandemic
The CEO of Perillo Tours, Steve Perillo, attributes this shift in hotel booking practices to the residual effects of the pandemic. He mentioned that hotels suffered significant financial losses during the pandemic, and as travel demand surged post-pandemic, they saw an opportunity to recoup their losses by charging higher rates for direct bookings. This strategy has had a direct impact on tour operators like Perillo Tours, as hotels are now reluctant to hold the same number of rooms for group bookings, effectively pushing out tour operators from their properties.
The sudden increase in hotel rates in Italy post-pandemic has further exacerbated the situation for tour operators. Perillo Tours has had to make adjustments to its tour itineraries and accommodations, as some hotels are no longer available for group bookings. This has led to operational challenges, as the company has to find suitable alternatives that may not always align with their usual standards. However, Perillo believes that this shift is temporary, and hotels will eventually go back to accommodating group bookings in the future.
Adapting to Changes
To cope with the changing landscape of hotel bookings in Italy, Perillo Tours is actively seeking to expand its portfolio of four- and five-star hotels for its future tours. The company is also considering pricing changes for tours that include three-star hotels like Hotel Isabella, as opposed to higher-end properties like Parco dei Principi. Despite these challenges, Perillo Tours is focused on providing a seamless guest experience by ensuring that tour itineraries remain engaging and packed with activities, regardless of the accommodations.
While the shift in hotel booking practices has presented challenges for Perillo Tours, the impact on the overall guest experience has been minimal. Tour guides and directors like Irene Capano have noted that accommodations like Hotel Isabella, though not as luxurious as Parco dei Principi, serve their purpose as a resting place during intensive tour days filled with sightseeing and activities. Capano remains optimistic that the trend of hotels excluding group bookings will not persist in the long run.
The changing landscape of hotel bookings in Italy has posed significant challenges for tour operators like Perillo Tours. However, by adapting to these changes, seeking alternative accommodations, and focusing on delivering exceptional guest experiences, tour operators can navigate through these challenges and continue to provide memorable and enriching tours for travelers visiting Italy.