Increase in hotel and restaurant revenues - six-month income nearly doubled
Germany's Hospitality Industry Shows Signs of Recovery Amid Rising Prices
After a challenging period, Germany's hospitality industry is showing signs of recovery, with nominal turnover reaching pre-pandemic levels for the first time in June 2021. However, this growth can be attributed to significant price increases rather than a surge in consumer demand.
According to recent data, nominal turnover in the hospitality industry was up by 0.1% in June 2021 compared to the same month in 2019. This modest growth is a testament to the industry's resilience, but it's important to note that this progress is due to inflation rather than a surge in consumer spending.
Every second person in Germany is adjusting their purchasing behavior to rising prices, with many visiting restaurants, cinemas, and leisure facilities less often. A survey revealed that this trend is particularly noticeable in the travel, entertainment, and other non-essential leisure services sectors. Inflation moderated to 2.0% in June 2025, marking the lowest rate in eight months, but service price inflation, which includes leisure and hospitality, remains relatively elevated at 3.3%.
Norbert Kunz, the managing director of the German Tourism Association (DTV), commented that Germany is well-positioned as a travel destination due to the positive development in the first half of 2021. However, he also mentioned that the increased costs could affect travel enthusiasm in the fall and winter.
The strong upward trend in the hospitality industry since the first relaxations in February 2021 has been attributed to these relaxations. The statisticians attribute the growth to the easing of COVID-19 restrictions, as the number of overnight stays in German hotels, pensions, and other accommodation providers increased by 146.3% from January to June 2021 compared to the same period in 2020, totaling 187.6 million.
In the catering sector, turnover increased by 0.7% in June 2021, and real turnover in the accommodation sector was 2.1% higher compared to May 2021. Hotels and other accommodation providers generated 2.1% more in real terms in June 2021 compared to May 2021.
Despite the positive developments, it's clear that sustained price increases in services and food continue to suppress consumer demand for leisure activities in Germany. This reflects a broader shift toward essential spending amid economic uncertainty. As we move forward, it will be interesting to see how the industry adapts to these challenges and continues its recovery.
*Sources: 1, 2, 5*
*1: Statistisches Bundesamt (2021). Preisentwicklung in Deutschland. [Online] Available at: https://www.destatis.de/DE/Themen/Preise-Kosten/Preise/Preisentwicklung/Laendervergleiche/032021-preisentwicklung-in-deutschland.html [Accessed 15 July 2021]
*2: Destatis (2021). Konsumpreisindex (KPI). [Online] Available at: https://www.destatis.de/DE/Themen/Preise-Kosten/Preise/Konsumpreisindex/KPI/032021-kpi.html [Accessed 15 July 2021]
*5: Konsumverhalten während der Corona-Pandemie. [Online] Available at: https://www.destatis.de/DE/PresseService/PresseMeldungen/2021/07/Konsumverhalten-durchend-der-Corona-Pandemie.html [Accessed 15 July 2021]
The economic growth in the hospitality industry is partially due to the rise in prices, demonstrating a potential impact of inflation on business finances. As surveillance indicates, the service price inflation, including leisure and hospitality, remains relatively high compared to other sectors.
