Brutal accommodation prices in Hungary take a toll on domestic tourism

In July, the number of domestic guests was 0.9% lower than in the same month the previous year, and the number of nights spent by guests was 2.7% lower. Only an increase in foreign tourists has reversed the overall trend. The number of foreign guests increased by 5.6%, as did the number of nights they spent there, by 0.5%.

The decline in domestic tourism is due to accommodation prices rising to levels that would have been considered impossible just a few years ago.

Taking a holiday has been an expensive pastime for many years, and it has become increasingly apparent over the past year or two that more and more people cannot afford to take a break. However, accommodation providers have repeatedly stated that they will not raise their prices this year, or only by a small amount. However, the statistical office has today published figures showing a huge increase in domestic accommodation prices.

The price of accommodation rose by 10–15% in August this year compared to the same month last year.

This year, the cost of guesthouses and apartments has reached the level of 3-star hotels a year ago.

Prices for apartments and guesthouses are now above HUF 33,000 per night for two people, which is an increase of 10–11% on an annual basis.

The graph below illustrates the extent of the price increase for accommodation this summer.

The average price of a three-star hotel is now over huf 42,000, which is a 12% increase compared to August last year. The price of 4-star hotels has increased by 15%, reaching huf 73,000.

In other words, hotel prices have risen at a rate three times higher than the rate of inflation. According to experts, local entrepreneurs have been facing difficulties for years due not only to the continuous and intense rise in purchase prices and labour costs, but also to the current lack of domestic guests with sufficient purchasing power.

Cover image (for illustration purposes only): Portfolio