Drastic drop in sales in the hospitality industry

drastic drop in sales in the hospitality industry

In the german hospitality industry, sales have plummeted dramatically due to the fallout from the corona pandemic. By almost half, the redemptions of hoteliers and innkeepers in march decreased – both in comparison with february 2020 and the previous year’s month.

The german hotel and restaurant association (dehoga) expects an even greater drop in sales of more than 90 percent in april. "The hospitality industry is fighting for survival," said dehoga president guido zollick on wednesday.

According to calculations by the federal statistical office, all branches of the hospitality industry have experienced the worst sales slumps since time series began in 1994. Compared to march 2019, according to data from the wiesbaden authority on wednesday, the revenue slumped by 45.4 percent in real terms, and compared to february 2020, the revenue fell by 44.6 percent in price-adjusted terms.

In the fight against the spread of the virus had the policy from the 18. Marz accommodation of tourist guests in hotels and other lodging establishments prohibited. As of the 22. Guesthouses were closed in march with the exception of pick-up and delivery services. In the first quarter, price-adjusted sales fell by 15.8 percent compared to the same period of the previous year.

Since mid-may, the restrictions have been gradually eased again. However, distance rules still apply nationwide. In the restaurant, tables and chairs usually have to be 1.5 meters apart from each other. There are occupancy caps for hotels in some states. This means that hotels and restaurants are not yet able to operate at full capacity. "Due to the clearance requirements, sales are 50 to 70 percent below the previous year’s figures," explained zollick and warned of a wave of bankruptcies never known before. "Hundreds of thousands of jobs are at risk."

Hospitality and tourism are among the industries hardest hit by the pandemic. "The rescue fund with direct financial aid is overdue and must come now," zollick affirmed. It is about the preservation of the tourist infrastructure.