Austria: Four out of ten hotels became more expensive

Markus Gratzer, Secretary General of the Austrian Hotel Association, is relying on strength and tailwind when promoting the winter. Despite record overnight stays, 4 out of 10 hotels' conclusions over the summer are cautious due to the cost increases.

The booking situation is weaker for the coming winter: “What has been received by the hotels so far is behind the rumored holiday plans from the main markets,” he refers to the ÖHV’s representative industry survey with 225 participating leading companies. 42% of the hotels surveyed expect a decline in overnight stays in winter if bookings do not pick up.

The industry's observations correspond to the forecasts of WIFO: This sees the level of overnight stays in the fourth quarter slightly above the weak comparable period of the previous year and the price-adjusted gross value added still a whopping 9% below the fourth quarter of the pre-crisis year 2019. There is a need for action: “The Winter tourism is the Austrian success program par excellence, from which many regions live. At the same time, due to the weather and climate, he is on more shaky ground than many would like to admit, and is also receiving one broadside after another in the public debate. In order to be successful, you need broad commitment at the highest level, more resources and, above all, a strategy that is developed with the industry's thought leaders," says Gratzer.

In the current difficult economic situation, many hotels - one in two, according to ÖHV-Inside - are scoring points by being more reserved when it comes to prices: Where possible, companies only pass on some of the cost increases and thus accommodate guests by making savings. Because they reduce additional expenses by 2/3, shorten the length of stay by 57%, and save 1/3 by choosing cheap accommodation: “Only those who calculate carefully can work economically under such conditions,” is how Gratzer sees the companies doing their calculations demanded even more than usual.

2 out of 3 hotels indicate that bookings are made at very short notice. “The ability to plan is gone, but the hope that we can still fill the empty beds is alive.” The weather will be more crucial than ever for the course of the season: “Because the mood is all the more important the shorter the booking is made. Lots of snow and sun would be the best economic stimulus program.”

He would like to see restraint from politicians: “Let those who want to work work: that would help! “Open labor market barriers, we have vacancies for everyone,” he has good news for everyone who is looking for new challenges: “In the winter destinations in the West as well as in the urban hot spots like Vienna.” In focus: skilled workers for service, kitchen and reception .

56% say loans are significantly or at least somewhat more difficult to obtain. Coupled with the current interest rate landscape, this means one thing above all: less investment is being made. 57% are reducing the investment volume, but at least 37% are staying on track: “Politicians have to keep an eye on this. If the trend continues, sooner or later international competitiveness will suffer,” says the industry expert.