Accommodation prices may rise in Hungary due to new charge
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Restaurants, confectioneries, bars and other catering units have already introduced a so-called compulsory service charge, which could reach 10-15 % of the price of the customer’s order. Now that system can be extended to the accommodation sector as well, meaning a general and significant upsurge in prices.
Tamás Flesch, the head of the Hungarian Hotel and Restaurant Association (HH&RA), talked about that initiative in the podcast of G7, a Hungarian economic news media outlet. Mr Flesch added they had already lobbied earlier for the modification, but now they moved one step ahead in their mission.
He said the sector is in dire need of a price rise because of the high operation costs. He stressed that even though tourism reached pre-pandemic levels in Hungary, its profitability still falls way below the earlier figures. Furthermore, labour shortage hits the sector hard. If their will goes through, accommodation service providers will be able to raise the wages of their employees in proportion to the number of tourists. Moreover, that plus income would bear a lower tax burden for them.
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The so-called hotel service charge would be lower than in the catering sector. Mr Flesch said they expect a 2-4% extra fee, which would be added to their employees’ wages as an incentive.