Crete’s Tourism Season Faces Last-Minute Bookings and Pressure on Hotel Revenues

“The season is expected to continue with last-minute bookings, which means that many hotels are being forced to offer discounts in order to maintain their occupancy levels,” Manolis Tsakalakis, former president of the Rethymno Hoteliers’ Association, told the Athens-Macedonian News Agency (ANA-MPA).

According to Mr Tsakalakis, July occupancy rates in Rethymno are expected to reach approximately 85%, while June ended with average occupancy of around 80% and a 3% decline in overnight stays compared with the same period last year. “This represents an early warning sign regarding hotel companies’ revenues at the end of the year,” he noted, adding that concerns are also being raised by the performance of several luxury hotels in Crete—particularly in Rethymno—which are recording lower occupancy rates than initially expected.

He attributes the moderation in tourist spending to the economic pressures faced by European travellers, a trend reflected both in booking patterns and in their overall consumer behaviour.

At the same time, data from the Institute of the Greek Tourism Confederation (INSETE) show strong growth in tourism flows to Crete. During the first five months of 2026, the island welcomed a total of 1,706,322 air passengers from both international and domestic markets, maintaining its position as the leading regional destination in Greece.

International air arrivals reached 1,153,569, representing a 13.8% increase compared with the corresponding period in 2025. Heraklion Airport welcomed 825,563 international passengers, up 11.3%, while Chania Airport recorded 328,006 international arrivals, an impressive 20.9% increase, one of the highest growth rates among Greek destinations.

In May alone, Heraklion Airport handled 521,782 international passengers, an increase of 10%, while international arrivals at Chania Airport reached 226,313, up 18%, confirming Crete’s strong momentum ahead of the peak summer season.

Domestic air traffic also recorded growth. During the first five months of the year, domestic arrivals reached 552,753, increasing by 3.1%. Of these, 366,645 passengers arrived through Heraklion Airport (+1.7%), while 186,108 arrived through Chania Airport (+6.1%).

However, the findings of INSETE’s latest study, “Who Goes Where? How Long Do They Stay? How Much Do They Spend? – Analysis of Main Markets by Region 2025”, indicate that the increase in visitor numbers is not being matched by a corresponding rise in tourism revenues.

Crete remained Greece’s leading destination for German travellers in 2025, recording 1.694 million visits, up 6%, and 13.258 million overnight stays, up 2%. Nevertheless, travel receipts from Greece’s largest inbound tourism market declined by 9%, falling to €1.176 billion from €1.286 billion in 2024.

Average spending per visit by German travellers to Crete stood at €694, while average spending per overnight stay was €89. The average length of stay reached 7.8 nights.

According to INSETE, these figures confirm that tourism demand remains strong; however, economic pressures affecting households in Greece’s key European markets are limiting spending per trip. The institute therefore highlights the need to further enhance the value proposition of the Greek tourism product and to place greater emphasis on attracting markets and visitors with higher spending capacity. Crete is among the destinations with significant potential for further improvement in this direction.