Hungarian hotels will get a lot more expensive

Because of soaring inflation and extreme food prices, Hungarian hotels’ operating costs are getting much higher. Due to the energy crisis, many hotels had to close, so the supply is shrinking while demand stagnates. It is still unknown how long the situation might remain like this. In the current economic situation, the will to travel could decrease significantly.

Many hotels could not keep up with the rising energy costs and had to close down either temporarily or permanently. The shutdowns range from small guesthouses in the countryside to the largest hotels in the country. The crisis does not have mercy on anyone. This move was expected as the utility costs of some hotels had risen by about fivefold in some cases. Even the luckier ones have to pay three to four times more this winter, reports G7.hu.

The crisis spares no one

Balázs Kovács, the director of Hotel Danubius said that normally, the energy costs of a hotel are around 4-5 percent of the income. Since the start of the energy crisis, this grew to about 15-20 percent. But the rising energy costs are just part of the problem. Food also got more expensive by about 25-30 percent. While at the same time, labour costs had risen by about 10 percent. The problem is further exacerbated by the fact that in the hotel industry, workers do not earn much.

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