Discount hotels and hotel reservations in Majorca, Tenerife, European and US Cities.

Broadly speaking, in recent years the price of hotel and lodging services worldwide has been on the increase; inflation as well as indigenous causes related to the travel and hotel industry, specific regional economic situations and such factors have been behind these price increases; the case of Europe and Spain, as a major tourist destination, has not been an exception.

But aside from truly understandable and justifiable causes, the price of many products and services in Spain suffered a mysterious and significant increase on the specific date when the country left the peseta as its currency and adopted the euro. Back then, two distinct phenomena were observed:

First of all, people went to banks to change the old denomination bills and coins for the new euro currency, and soon it became evident that there were more pesetas than previously thought, a sure sign of fiscal evasion.

And the second thing was a subdued increase in prices that can only be explained as economic agents taking advantage of the relative lack of knowledge and familiarity with the new currency. Since people did not know the exact exchange rate for both the old and the new currency, during a period of time it was relatively easy to increase profits by changing prices without much ado.

So when a Frenchman says that what used to cost 70 francs now costs 70 euros - indeed, much more money -, he is empirically right.

So tourists and travellers, as consumers in general, are left in Europe with higher prices that will certainly not come back down to pre-euro levels, and in this regard it is important to have available the services of reputable tour operators and reservation gents in order to choose wisely your hotels before committing.

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