Decrease in Half-Year 2025 Hospitality Sector Turnover by 3.7%
In the first half of 2025, the German hospitality industry experienced a decline in revenue, with a 3.7% decrease in real terms compared to the same period last year. This trend continued in June, as businesses in the sector reported a 5.9% drop in real (price-adjusted) revenue compared to the same month in 2024.
The data, provisional and recently released by the Federal Statistical Office (Destatis), also shows a 3.4% decrease in nominal (unadjusted) revenue for June 2025 compared to the same month last year. Compared to the previous month, businesses saw a 2.5% decrease in real revenue and a 3.9% decrease in nominal revenue.
Revenue from hotels and other accommodation providers saw a 1.6% decrease in real terms and a 5.5% decrease in nominal terms compared to May 2025. Gastronomy also experienced a decline, with revenue decreasing by 2.1% in real terms and 1.5% in nominal terms compared to the previous month.
The main reasons for this decline are ongoing inflation and rising costs for personnel, food, energy, and beverages. These costs have increased between 27 and 35 percent since 2022, causing customers to dine out less frequently and choose cheaper options. Additionally, the full 19 percent VAT on food since early 2024 has driven prices up in restaurants, further reducing demand. The absence of major sporting events like the previous year's European Football Championship also contributed to lower patronage.
In the first six months of 2025, revenue from gastronomy decreased by 4.1% in real terms compared to the first six months of 2024, while nominal revenue increased by 0.1%. In the same period, revenue from hotels and other accommodation providers decreased by 2.6% in real terms and 0.2% in nominal terms compared to the same period last year.
The data is based on calendar and seasonally adjusted figures for June 2025. For the entire first half of 2025, German hospitality businesses generated 0.1% less nominal (unadjusted) revenue compared to the same period in 2024.
