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Bavarian Hospitality Sector Faces 2.1% Real Revenue Decline in Early 2025

Gastronomy and beverage-serving segments see steep losses, while lodging shows slight growth; industry awaits tax relief measures.

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Overview

  • Price-adjusted revenues in Bavaria's hospitality sector dropped by 2.1% in Q1 2025, continuing a trend of real declines.
  • The gastronomy segment experienced a significant 4.7% decrease in real revenues, driven by inflation and higher prices deterring customers.
  • Beverage-serving establishments reported a 4.9% revenue decline, the sharpest among all segments, as they did not benefit from past VAT reductions.
  • Lodging saw a marginal 0.1% revenue increase, supported by hotels and pensions, though vacation rentals and campsites struggled.
  • Overall employment in the sector rose by 0.5%, but beverage-serving jobs fell by 5.8%, highlighting disparities across segments.