Horror prices await guests in Hungarian hotels this year

Hotel Lövér
Hotel Lövér and its park. FB/Hotel Lövér

After the drastic effects of the COVID pandemic, the number of accommodation properties is now falling again. At the same time, the energy crisis keeps forcing more and more hotels to close their doors. With costs rising sharply, those who stay open are constantly raising prices. In March, it cost HUF 50,000 (EUR 132,93) a night in a 4-star hotel.

It is no wonder, then, that the number of domestic visitors is falling, as the population is also suffering from inflation, which is at its highest level for decades. Domestic tourism is becoming increasingly vulnerable, Portfolio writes.

In March, a double room with half-board cost HUF 50,000, according to the latest data from the Central Statistical Office (KSH). What is more, this price is valid for weekdays; on the weekends, it was even more expensive.

Why is accommodation getting more expensive?

The main reason for the horror prices is that the tourism and catering sector is one of the most energy-intensive sectors. The unprecedented rise in energy prices over the past two years has pushed many companies in the sector to the brink of bankruptcy. With costs rising, they had no choice but to build them into consumer prices. However, even this could not always be done. Thus, many hotels and restaurants had to operate at a loss.

On top of the rise in energy prices, a steep rise in food prices has also been observed. To the tourism and catering sector, this has also been a huge increase in expenses. Labour shortages also remain a major challenge for the sector. Wages continue to rise and raw materials keep becoming more expensive. This makes breakfast and dinner in accommodation more expensive. This is not surprising, Portfolio notes, given food inflation of 40-50 percent.

The wave of closures of hotels is still ongoing

The energy crisis has led to many hotels closing down. The latest figures show that the wave of closures is still ongoing. In February this year, fewer than 850 bed and breakfasts were operating and the number of hotels fell to under 800. The former represents an annual decrease of 12 percent, the latter 8 percent.

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