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In September 2023, the Tourism Business Cycle Index stood at -3 (on a scale of -100 to +100), indicating that the sector’s players perceive their situation as slightly worsening after the end of the season, reports Turizmus.com.
The Hungarian Hospitality Employers’ Association, together with the Hungarian Tourism Association Foundation and GKI Gazdaságkutató (Economic Researcher), measures the expected development of the tourism business cycle on a monthly basis and publishes the Tourism Business Cycle Index, providing the market and the public with information on the trends expected in the near future.
The index decreased by three points in the ninth month, below the August increase but four points higher than a year ago.
The index fell in all three sub-sectors, with the largest decrease (seven points) in accommodation services. In September, the Tourism Business Cycle Index was slightly higher than the services sector index in the GKI business survey for the EU (-5 points) and higher than the GKI business confidence index (-9 points), representing the average for the national economy. The services sector index stagnated in September.
Booking numbers fell from September. Photo via Facebook/Hotel Oktogon
Among the regions, the outlook is positive only in central Hungary, while businesses in the other regions reported near stagnation or deflation. 52% of tourism firms reported an increase in operating costs in the last three months compared to the same period last year. The average increase was 35% (compared to 31% in August).
In September, 68% of tourism firms reported an increase in their service prices in the last three months compared to the same period last year. 31% reported no change in prices, while 1% reported a decrease.
The average price increase was 13% compared to the same period last year. In other words, the gap between the rise in operating costs and the rise in service prices has been widening again for two months, GKI analyzes the figures.
In September, 9% of tourism companies indicated that they expected to increase the price of their services in the next three months (compared to 15% in July and 12% in August); 89% of them will not change their prices, while 2% indicated a decrease.
Via turizmus.com, Featured image via Pixabay
