Austria's tourism under pressure: bookings are increasing, profits are falling!

Austria's tourism under pressure: bookings are increasing, profits are falling!

Austria's tourism businesses are currently faced with a challenging situation. Despite a positive booking situation, rising costs and economic uncertainty characterize the industry. As the 2025 Tourism Barometer from Deloitte Austria and the Austrian Hotel Association (ÖHV) shows, the general mood has turned negative. The more than 200 industry representatives surveyed expressed concerns about declining profitability.

Although sales growth has been recorded in the last two financial years, the profitability of many companies has deteriorated. The main reasons are the increased personnel, energy and goods costs as well as a high tax burden. In particular, the collective agreement wage and salary increases could not be fully passed on to the guests, which entails additional burdens for the companies.

Review of the industry

Companies consider the prospects for the coming summer to be cautious. According to the tourism barometer, 40% of companies fear a further deterioration in their financial situation. The industry currently rates its economic situation with an overall score of 3.06, which represents a deterioration compared to the previous year. This development is particularly evident when considering the return of demand to pre-pandemic levels, with high costs representing a significant hurdle.

The need for efficiency improvements and strategic pricing was emphasized by Deloitte and the ÖHV. Political framework conditions that counteract cost developments and reduce bureaucratic hurdles are a top priority for many companies. 42% of the companies surveyed have already reduced planned projects, and 35% are planning restrictions in the next five years.

Loan financing under pressure

The financial uncertainty also affects loan financing. Almost half of the companies surveyed reported difficulties obtaining loans. 39% of businesses that have taken out loans rely on variable interest rates, 23% on fixed interest rates and 38% on mixed financing. It is noteworthy that 36% of borrowers were asked by banks to provide higher collateral.

The warning about long-term negative effects from savings in maintenance and further development is getting louder and louder. The pressure on Austrian tourism businesses remains high, and the industry is faced with the challenge of finding ways to remain profitable despite the significant cost increases. The entire picture is characterized by a complex situation in which the industry faces both great opportunities and significant challenges. In this context, the demands for political support are becoming increasingly urgent.

For detailed information and further developments on the situation in Austrian tourism, visit Aviation Direct and The press.