Decline in Revenue Observed in the Hospitality Industry During the First Half of 2025
The hospitality industry in Germany has experienced a decrease in turnover during the first half of 2025, according to a report by the Federal Statistical Office (Destatis) released on Wednesday.
Nominally, hospitality businesses generated 3.7% less turnover in the first half of 2025 compared to the same period in 2024. This decrease is also reflected in real terms, with a drop of 3.7%.
The catering industry, a significant sector within the hospitality industry, has also seen a decline. In real terms, the turnover of the catering industry decreased by 4.1% in the first half of 2025 compared to the same period in 2024. Nominally, the turnover of the catering industry increased by 0.1%, but this slight increase is overshadowed by the decline in real terms.
Hotels and other accommodation providers have also been affected. They experienced a nominal decrease in turnover of 4.9% in the first half of 2025 compared to the same period in 2024. In real terms, the decrease was 2.6%.
June 2025 saw a further decrease in turnover for both the catering industry and hotels and other accommodation providers. Compared to June 2024, the catering industry saw a real decrease in turnover of 2.1 percent, and hotels and other accommodation providers experienced a real decrease of 1.6 percent.
The primary reason for this decrease in turnover is a sharp decline in business activity due to worsening economic conditions and cautious consumer behavior. Sales, adjusted for price changes, dropped by 3.7% compared to the same period last year.
Reduced customer spending and demand, linked to ongoing economic uncertainty, higher inflation, and cautious traveler and diner behavior, are key contributing factors. Rising wage pressures and operating costs, with wage growth around 5.0% in Q2 2025 increasing labor costs for hospitality businesses, also play a significant role.
Higher employee turnover, especially intensified during the summer months, leads to staffing difficulties and increased costs for recruitment and training, affecting service quality and business continuity. Changes in consumer booking patterns, including more last-minute cancellations and a demand for flexible booking policies, create operational challenges and revenue unpredictability for hospitality providers.
These economic and operational pressures have deepened the crisis in Germany’s hospitality sector, manifesting as lower real turnover despite nominal revenues being somewhat supported by price increases.
[1] Destatis Report, Q2 2025 [2] Destatis Report, Q2 2025 Labor Market Statistics [3] Destatis Report, Q2 2025 Employment Statistics [4] Destatis Report, Q2 2025 Consumer Price Index [5] Destatis Report, Q2 2025 Tourism Statistics
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