WIESBADEN – The German hospitality sector witnessed a 2.6% increase in real revenue and a 9.6% rise in nominal revenue in 2023 compared to the previous year, according to estimates by the Federal Statistical Office (Destatis). This growth, however, still falls short of pre-pandemic levels.
The industry’s positive annual performance is primarily attributed to significant real revenue gains in the first quarter of 2023, which were 15.9% higher than the same period in 2022, heavily affected by the COVID-19 pandemic. Despite this strong start, the real revenue growth weakened as the year progressed, with real revenues in most months lower than the corresponding months in 2022. Factors such as the 8.1% increase in prices within the hospitality sector, driven by higher costs for food, personnel, and energy, have contributed to this slowdown. When compared to pre-COVID levels in 2019, real hospitality revenue in 2023 was 9.9% lower, whereas nominal revenue saw a 9.8% increase.
The preliminary results for November 2023 also reflect this trend, showing a 2.0% real and 2.5% nominal month-on-month increase, but a slight 0.1% real decrease compared to the same month last year, despite a 5.5% nominal increase. This data underlines the ongoing challenges facing the hospitality industry in balancing revenue growth against rising operational costs and shifting consumer behavior in the post-pandemic landscape.