Germany's Hospitality Sector Sees Mixed Revenue Trends in Early 2025

January 2025 data shows nominal revenue growth driven by higher prices, but real revenues remain below pre-pandemic levels.

Nominal revenues in Germany's hospitality sector rose by 3.9% in January 2025 compared to January 2024, primarily due to price increases.
Adjusted for inflation, real revenues declined by 0.3% year-over-year in January 2025, highlighting ongoing economic challenges.
From December 2024 to January 2025, real revenues grew by 2.7%, marking the largest monthly increase since September 2023.
The sector ended 2024 with a 2.6% real revenue decline compared to the previous year, reflecting difficulties in achieving full recovery.
The reintroduction of the 19% VAT rate in January 2024 has contributed to higher prices, complicating efforts to return to pre-pandemic revenue levels.