Austrian hotel industry under pressure: balance sheet analysis shows earnings problems

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The balance sheet analysis published today by the Austrian Hotel and Tourism Bank presents a sobering situation for the Austrian hotel industry, as Johann Spreitzhofer, chairman of the Hotel Industry Association of the Austrian Federal Economic Chamber, emphasizes. The study of 200 hotel establishments shows that despite increasing sales and overnight stays, earnings are under strong pressure. The economic situation and the high inflation rate in particular led to this result in 2023.

As early as the summer of 2023, a survey of around 600 businesses indicated this development. Rising input prices such as energy, food and personnel costs are placing a massive burden on businesses. Price increases are not arbitrary decisions, but are often necessary to survive economically, says Spreitzhofer. Guests react sensitively to price changes, which is also reflected in reduced consumption of additional services such as massages.

The industry is responding with increased cost management, including energy-saving measures and price comparisons with suppliers. At the end of July, further survey results are expected to provide information on developments compared to the previous year. Despite self-imposed measures, Spreitzhofer is appealing to politicians to urgently implement adjustments to depreciation periods and relief measures in order to reduce the financial burden of borrowed capital and strengthen equity.

Headquarters of the WKO (Photo: Austrian Chamber of Commerce).
Headquarters of the WKO (Photo: Austrian Chamber of Commerce).