Hospitality sector | Germany

Confidence grows in the industry

According to the Dehoga survey, 43.2 percent of businesses report good to very good Easter business.
IMAGO / Frank Sorge
According to the Dehoga survey, 43.2 percent of businesses report good to very good Easter business.

Following the elimination of Corona requirements, demand in the hospitality industry is picking up significantly.

According to a survey by Dehoga Bundesverband, 43.2 percent of establishments report good to very good Easter business, but rising energy costs are increasingly weighing on hoteliers and restaurateurs. Sales in April were still 17 percent below the pre-crisis level in April 2019, but the loss was much more serious in the previous month of March, with a drop of 27.5 percent compared to March 2019. So things are clearly on the up. This is particularly true of private demand.

The positive trend is also evidenced by Easter business, which was pleasing in large parts of the industry. 43.2 percent of entrepreneurs rate it as good to very good, and 33.2 percent are satisfied. "Confidence is growing in the hospitality industry," says Dehoga President Guido Zöllick. "The removal of the Corona measures is creating a mood of optimism among hosts and guests alike. People are looking forward to being able to go out and travel freely again.

Corporate business will pick up again

In contrast to the upswing in private meetings and tourist overnight stays, business demand still lags behind. With regard to private bookings, 21.6 percent of entrepreneurs say these are currently still doing poorly to very poorly. In the business range however it is with 46,4 per cent more than twice as many and thus nearly each second.

Zöllick is nevertheless cautiously optimistic: "Against the background of the further decline in Corona figures, we assume that corporate business will also pick up again." Important signals, he says, are the major trade fairs that are taking place again throughout Germany and are also bringing international guests back to the cities.

However, entrepreneurs are concerned about the massive price increases and growing uncertainties. Businesses cite skyrocketing energy costs (89.4%), followed by rising food prices (86.8%) and personnel costs (64.9%) as the biggest challenges. "There is no end in sight to the price spiral," Zöllick said, warning, " Ensuring reliable and affordable energy supplies is urgently needed for the planning security of our crisis-ridden industry."

The pandemic has hit the hospitality industry harder than almost any other major industry, says Zöllick. He therefore reiterates the association's call for the reduced VAT rate for food in restaurants to be removed for an indefinite period. "Maintaining the 7 percent VAT on food is crucial to the competitiveness and future security of our industry."
From April 30 to May 4, 3,400 hospitality businesses from all over Germany took part in the Dehoga Bundesverband's survey of the economic situation.