Possible drop in prices?

N

NeilT

New Member
I know this has been discussed in earlier threads, but I'd like to hear people's opinions and speculation as we get closer to the start of the season (especially grateful for the opinion of those "in the know" and who live on the island).

We have all seen the value of the £ drop tremendously from a few years back, and it's been particularly noticeable within the last 6 months. The exchange rate for changing from GPB to Euros was less than one Euro to the pound at one point (around Christmas), but has rallied to be somewhere around 1.05-1-07 currently.

Do people think that we will see anything in the way of a drop in prices for either club entry or drinks this season? The global recession has hit many countries hard, and the UK is certainly one that has taken a battering. I would hazard a guess and say that overall, there will be a lot less people looking to go on holiday this year, and this in turn will mean less people on the island during the season. Will the promoters and clubs owners "play ball" this year, and work with the basic economic principles that if there is a less demand, they will lower the prices? Will their hand be forced into doing this do you think?

Cheers,
Neil
 
I suggest that prices will drop, or even crash, but not this season. The euro at present is overvalued and this will mean very bad news for Ibiza and the other Club Med countries.

The sterling pound will regain in strength for next year and will become like gold, as the Euro countries start to deflate due to falling economic output and job losses. I fear bad times ahead for Spain, Greece, Ireland, Italy and France, as the euro deflates and debt from the property crash increases.

Ibiza will have to drop its prices or else its in big trouble, but it wont happen too easy. The big clubs are doomed if they continue to charge inflated prices on tickets and drinks, that day is fast disappearing over the horizon, and the sooner Ibiza realises this, the better for the Islands economy.

TIP- Buy sterling now as I predict the euro loosing 20-30% in value to Sterling over the next 18months.
 
You've got some points there, Bez, but I'm not so sure the pound is going to recover quite so drastically. One of the reasons the pound has devalued is weakness in the UK economy, which isn't going away quite that fast. Also, people are moving money out of dollars, which rallied too much in the autumn but now face devaluation as the US Treasury keeps printing more cash. Will they move money into pounds, euros, swiss francs, etc? Hard to guess. Obviously the euro has been the choice lately...

Anyway, to answer the main question, as we've said in other threads, Ibiza is in a euro-zone economy. Businesses' costs are all in euros. The relative strength or weakness of the pound has nothing to do with it... remember, the island gets more visitors from the euro-zone than from the UK.

What might influence prices is the overall economic situation. If attendances are down or drink sales plummet, only then would I really expect businesses to take action.
 
Yes, but the Sterling Pound is answerable only to the British Exchequer. They have the big advantage of being able to take corrective measures to ensure that the pound never devalues too much. As you say the American Treasury will keep printing greenbacks, but the American Treasury is not controlled by the White House, they just borrow from it.

In the euro-zone the Germans dictate what interest rates you pay and what economic policies you have to employ. You can be sure the bigger countries will look after themselves first and weaker zones will take much longer to recover.

The Pound has had to diet for the last few years, I feel it will strip out much fitter than the overweight euro in the years to come.
 
Bez said:
Yes, but the Sterling Pound is answerable only to the British Exchequer. They have the big advantage of being able to take corrective measures to ensure that the pound never devalues too much. As you say the American Treasury will keep printing greenbacks, but the American Treasury is not controlled by the White House, they just borrow from it.

In the euro-zone the Germans dictate what interest rates you pay and what economic policies you have to employ. You can be sure the bigger countries will look after themselves first and weaker zones will take much longer to recover.

The Pound has had to diet for the last few years, I feel it will strip out much fitter than the overweight euro in the years to come.
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Yeah, good luck with that analysis. :lol::lol::lol:

Still, have heard some interesting rumours about this year, hold onto your hats. ;););)
 
I had a quick look on Space's website and it looks like We Love... is at 50euros at the moment, I am hoping that either tickets will be cheaper out there or they will come to their senses in the meantime and do a promotion otherwise I might be missing out this year! Obviously, everyone is suffering though, even the big clubs. I would be happy to pay 40euros max.
 
ibiza_seeker said:
I had a quick look on Space's website and it looks like We Love... is at 50euros at the moment, I am hoping that either tickets will be cheaper out there or they will come to their senses in the meantime and do a promotion otherwise I might be missing out this year! Obviously, everyone is suffering though, even the big clubs. I would be happy to pay 40euros max.
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yeah but really if you're on holiday and want an amazing experience, would you rather pay the 50 euros and have one of the best club nights in the world.

or go to es paradis for nothing with five other people and spend of the rest year wishing you'd chosen option a.

??
 
The former unless its going to be rammed so hard you cant move. One thing I hate more than a crap night is not being able to move or dance when youve payed a stupid amount to get in.

tom
 
ten_uk said:
The former unless its going to be rammed so hard you cant move. One thing I hate more than a crap night is not being able to move or dance when youve payed a stupid amount to get in.

tom
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Definitely but then you've got the nights that are dead which you wish you never bothered with - finding ones that are just right numbers wise can be a gamble!
 
grego said:
yeah but really if you're on holiday and want an amazing experience,
would you rather pay the 50 euros and have one of the best club nights in the world.

or go to es paradis for nothing with five other people
and spend of the rest year wishing you'd chosen option a. ??
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quite often you can have the best nights and meet the most amazing people
@ places nobody has on the radar for that night ...
 
icebaer69 said:
quite often you can have the best nights and meet the most amazing people
@ places nobody has on the radar for that night ...
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Yes, but it's a bigger chance of having an amazing night on one of the clubs you know will rock and play excellent music. So the risk of not having a good night at a random club is bigger.

When you are on holiday, does it really matter if you pay €50 extra to get in and maybe have the best clubing night of the year? Think about all the times one wastes €50 at something within a year. One less latte a month through the year will save you that. I'm sure there are better places to save money than at club entrence a night during a vacation.
 
I completely agree with you and I can assure you that I wont be wasting money going to the smaller, commercial clubs. My point was just that it's a shame that the clubs are charging such an extortionate amount given the current economic climate. Just think of their profit margins! I would happily pay 40 euros but I, as a holiday maker, am on a budget so it just means that I will have to pick certain nights that I really dont want to miss, rather than say, going to the same club twice.
 
of all of them, 50E for WLS is not taking the biscuit, look at the length & quality of the line ups, how many rooms etc. how much would you pay for a meal, how much to watch a game of football etc.

remember the promotors have to allow for overheads etc whilst dealing with the strong £ & potentially falling attendances - I don't know but Darren Hughes is of course scouse, so maybe their accounts are in £.

accepted some of the promotors will take the pish & the drinks are another thing. Hats off to cream tho for attempting to pro actively deal with it with some offers.
 
The rate of sterling to euro just determines how much money you get for your pound. This will have little or no bearing on prices in Ibiza. There are probably far more visitors from EURO zone countries.

They big driver will be that there is a global recession and people are being more prudent.

A handful of the big nights (usual suspects) will continue to do really well. Everything else will be a washout.

I look forward to it. The prices for clubs, drink, transport is shockingly overpriced and has been for years.
 
agentundercover said:
accepted some of the promotors will take the pish & the drinks are another thing. Hats off to cream tho for attempting to pro actively deal with it with some offers.
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Although I haven't exactly seen this actively promoted yet, only a small sentence on their website?
 
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