German Hospitality Sector Sees Decline in Real Revenue for 2024

Despite nominal growth from price increases, inflation-adjusted revenues fell, reflecting ongoing economic challenges and cautious consumer spending.

The German hospitality sector reported a 2.1% decline in inflation-adjusted revenue for 2024 compared to the previous year, according to preliminary data from the Federal Statistical Office.
Nominal revenues increased by 1.0%, driven by widespread price hikes implemented by over 80% of businesses in early 2024 after a VAT increase from 7% to 19%.
The gastronomy industry experienced a sharper decline, with real revenues down 3.7% in the first 11 months of 2024, while the accommodation sector saw a smaller decrease of 0.4%.
Compared to pre-pandemic levels in 2019, inflation-adjusted revenues in the hospitality sector were 12.6% lower, despite a 10.4% nominal increase due to price adjustments.
Major events like the UEFA European Championship and high-profile concerts provided temporary boosts, but fears of job losses and reduced real incomes led many consumers to limit discretionary spending.