According to the association, the German hospitality industry is increasing prices despite the difficult situation

According to the association, the German hospitality industry is increasing prices despite the difficult situation

According to a report by www.n-tv.de,

The German hospitality industry has increased its prices by a fifth in the past four years. In 2023 the markup was also higher than annual inflation. The industry association still sees the companies in a tense situation. Because sales are still below the level before the Corona crisis.

The Federal Statistical Office has reported that the German hospitality industry earned 9.6 percent more last year than in 2022, although sales only grew by 2.6 percent when adjusted for inflation. The industry's inflation rate was 8.1 percent, which is above the general inflation rate of 5.9 percent on average. This shows that the price increases have led to significant sales growth, but at the same time have affected customers' purchasing power.

The increase in the cost of energy and food, as well as the end of tax breaks at the beginning of the year, have led to new price increases. This has led to a third of companies expecting losses for the current year. The situation is described as extremely tense by the managing director of the German Hotel and Restaurant Association (Dehoga). Sales have not yet regained the level of 2019 and are still below the level before the Corona crisis.

The economic report from the IFO Institute also shows bleak prospects for the industry. Business expectations have plummeted and inflation has dampened not only businesses but also customers' purchasing power. Private consumption fell by 0.8 percent, with people living alone on low incomes being hit hardest by inflation.

The situation in the German hospitality industry remains challenging and is influenced by rising costs and price increases. It is up to politicians to ensure fair competitive conditions and find solutions to improve the tense situation in the industry.