Published by Global Banking & Finance Review®
Posted on September 2, 2025
1 min readLast updated: January 22, 2026
Add as preferred source on GoogleGermany's hospitality sector faced a 9.3% revenue drop in July. Rising costs and price-sensitive guests are major challenges, with many businesses fearing future losses.
BERLIN (Reuters) -Germany's hospitality industry saw revenues fall by 9.3% in July, according to an industry survey published on Tuesday, offering little respite for companies worried about rising costs for labour as well as food and drink.
Hopes for a summer boost were not met, the DEHOGA industry association said on Tuesday, citing the results of its poll of almost 4,000 businesses.
For the months of August and September, 32% of them rated their booking and reservation situation as poor to very poor, versus 23.8% who found it good or very good.
"Costs are skyrocketing, guests are more price-sensitive, and sales are declining. The current pressures are pushing many businesses to their limits," DEHOGA President Guido Zoellick said in a statement.
Two fifths of hospitality businesses such as hotels and restaurants fear losses in 2025, the survey found.
However, some 76% of businesses expect their financial situation to stabilise if the sales tax is reduced by the German government from a current 19% to 7%, as promised by the coalition from early next year.
(Reporting by Klaus Lauer, Writing by Rachel More, Editing by Kirsti Knolle)
Germany's hospitality industry saw revenues fall by 9.3% in July.
The survey found that 32% of businesses rated their booking situation as poor to very poor.
Two fifths of hospitality businesses fear losses in 2025, indicating significant concerns about future profitability.
76% of businesses expect their financial situation to stabilize if the sales tax is reduced from 19% to 7%.
Businesses are facing skyrocketing costs, increased price sensitivity among guests, and declining sales.
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