Despite a good summer season, hospitality businesses still uncertain about their future
At the end of the summer, we asked HOTREC members to share their views and information on what happened to the hospitality industry in their country over the season.
Overall, 88% of members felt that the summer season was positive or very positive. However, even though demand was high and almost reached pre-pandemic levels, the inflation, energy prices and labour shortages once again brought much uncertainty to the sector.
Occupancy rates of hotels for June, July and August were high approaching 88% overall. For restaurants, bars, cafés and late-night entertainment establishments, the VAT turnover showed, in most countries, to be higher than it was over the same period in 2019.
Our members proceeded to let us know the top 3 challenges faced by the industry this summer:
- For 100% of the respondents, attracting and retaining the workforce in the sector (lack of labour force/lack of skills) was the main challenge this summer.
- 86% mentioned the increase in energy and food prices.
- And with 31% of the respondents both the geopolitical situation and the cash flow/loan terms were shown as challenges.
55% of the respondents believe the disruptions will last until 2024 and 32% that they will last until 2025 and after (14% until 2023). A lot of members said that it was hard to predict as the sector has been affected by several different crises in recent years and will continue to do so.