Costs in Hungary’s hotels reached a psychological limit

The cost of spending a night in a four-star hotel in Hungary reached the psychological limit this year. That is probably why many Hungarians choose to spend their summer holiday abroad than in Hungary. The number of domestic guest nights is falling, but the Hungarian tourism sector seems to be saved by foreign tourists, especially European visitors and Chinese. But is that a favourable trend?

We wrote HERE that foreign, especially Chinese tourists are saving tourism at Lake Balaton this year. According to portfolio.hu, spending a night at a four-star hotel in Hungary has never been this expensive. You must pay more than HUF 60,000 (EUR 155) per night in a four-star hotel. But the costs are high even in a three-star counterpart. In July, the figure was HUF 35,000 (EUR 90) per night.

That is why fewer Hungarians spend their holidays in Hungary. Because of the record-high inflation, real wages are diminishing. Therefore, they spend more and more on buying food, so they do not have money to pay for extra services like a holiday. Moreover, the government allowed citizens to pay for food with their SZÉP cards in 2023 to boost the contracting retail sector. However, SZÉP cards were the financial source of domestic holidays. Since you can use the money on them for other, more needed purposes, many delay their domestic holidays or go abroad.

In July, based on recent data from the Hungarian Central Statistical Office, accommodation costs rose by 9.6 percent compared to June. Four-star hotels cost EUR 155 per night. But you have to empty your pocket even to book an apartment. Their price is above HUF 25,000 (EUR 65) each night. Portfolio shared a chart about the change in hotel prices in Hungary, and the soaring is mind-blowing in this sector, especially in the case of four-star hotels with breakfast or half-board.