I would like to trave to Madrid for Easter 2003 with my family, but all hotels seem to be already booked. Any advice/suggestions/explainaition for high volume?

Yeah, any explanation? I don't know about hotels but I can tell you that hostels don't usually take reservations so long in advance. Therefore, all of them should have availability for that period.

If you try e-mailing hostels, they are likely to tell you to contact them again later because we don't usually take reservations more than 2 or 3 months in advance.