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article_detail
Date Published: 15/09/2022
ARCHIVED - Balneario de Archena defies pandemic and inflation to make record income in 2022
Sales at the Archena Spa have bounced back, following increased demand post-pandemic
The Balneario de Archena has found a sweet moment in this 2022 as a contrast to the hardships suffered during the two most intense years of the pandemic. For the last two years, with restrictions and even times of complete closures, the famous Murcia spa’s turnover was well below the figure it reached in 2019, but now that trend has been reversed to the point that in this 2022 it is expected to exceed its pre-Covid turnover with solvency and set a new record.
To date there have been four consecutive months this year when sales have reached an all-time high, which has allowed 1.3 million euros more to be collected than was obtained in the same period in 2019, according to sources from the company.
This performance is expected to be maintained in September and October, and the Balneario is looking to close the year with 1.5 million more in turnover, which would mean reaching a total 16.7 million euros in 2022. This would mean higher growth than its average before coronavirus, with a 10% year-on-year increase in turnover.
The company has already ruled out 2020 and 2021 as valid benchmarks for any measurement due to the poor results caused by Covid-19. Specifically, with a turnover of 5.4 million, in 2020 the turnover of the Balneario de Archena fell to a third of its usual level, while in 2021 the reduction compared to 2019 was a third, reaching 9.9 million euros. Consequently, the losses were 1.6 million euros and 270,000 euros respectively.
Now though, although that trend has completely changed, strong sales do not necessarily translate into high profits for the spa as inflation is also taking its own toll on the business by raising costs considerably. Indeed, spending on electricity, gas and water has doubled in the last financial year.
Nonetheless, it seems that the price hikes have not deterred customers from going to the spa, because even if they have less money to spend, they are still willing to spend on luxury and leisure activities such as this.
“Covid has disappeared from the mentality of our customers. The average stay has increased from 2.1 to 2.3 nights and this weekend we only have four rooms left,” the company concludes.
Learn more about the Balneario de Archena luxury spa and thermal baths
Image: Balneario de Archena
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