A long-standing negative trend was broken in October by the Tourism Climate Index (TCI) for accommodation services, showing a significant upward trend, indicating consolidation in the sub-sector. However, the long-standing negative situation in the hospitality sector has remained unchanged for 16 months, with operators continuing to perceive their situation as deteriorating.
While the hospitality index has been in negative territory for 16 months, the accommodation services index has risen significantly, breaking a six-month negative trend, reports Világgazdaság.
46 percent of accommodation providers expect an increase in the number of guest nights, while 25 percent fear a decline, while 32 percent of hospitality operators expect a decrease in guest nights and 24 percent expect an increase, based on the October Tourism Climate Index survey. 23 percent of those operating in the other tourism sector expect customer traffic to increase compared to the same period last year, while 26 percent predicted a decline in October for the next three months.
The situation is perceived as slightly worsening by operators in the sector,
as suggested by the October value of the TCI of minus eight points, on a scale of minus 100 to plus 100.
The index fell by five points in the tenth month, and including September, it is now down by eight points, but still five points higher than a year ago. The index rose significantly in accommodation services, while the other two sectors fell.
Services, including tourism, are able to maintain a near-stagnation despite the economic difficulties. Photo via Facebook/Hotel Oktogon
Looking at the tourism sector as a whole, only companies in central Hungary, thanks to the capital, forecast stagnation, while businesses in other regions predicted a downturn, with a TCI of minus 9 to minus 14.
24 percent of tourism firms said they expected to raise the price of their services in the next three months.
In July, 15 percent, 12 percent in August, and 8 percent in September were preparing to do so.
Last month, 69 percent of those surveyed said they would not change prices, while seven percent planned to cut prices, down from two percent the previous month. In accommodation services, 22 percent plan to increase prices, while 19 percent in hospitality and 31 percent in other tourism sectors.
16 percent of tourism firms have raised prices in the recent past and will do so in the near future, up 10 percentage points from September.
Via Világgazdaság, Featured image via Facebook/Arany Kaviár Étterem