January Sales Figures Show Improved Performance for Hospitality Sector

The hospitality industry, encompassing restaurants and hotels, has experienced a relatively positive start to 2025. Despite some challenges, the overall performance in January indicates a rebound in business activity.

According to preliminary data released by the Federal Statistical Office, total revenues within Germany's hospitality sector increased by 3.9% in nominal terms compared to January 2024. However, when adjusted for inflation, the figures reveal a slight decline of 0.3%.

Comparing December 2024 to January 2025, the statistical agency reported an increase in revenues both in real terms (up by 2.7%) and nominally (up by 2.5%).

In 2024, the hospitality sector concluded with a real revenue decrease of 2.6%. However, the industry managed to boost its nominal revenues by 0.6% year-on-year, primarily due to price increases for food, beverages, and accommodation services. Nevertheless, the sector has yet to regain the revenue levels seen prior to the COVID-19 pandemic.

During the pandemic, the German government temporarily supported the hospitality sector with a reduced VAT rate. Since January 1, 2024, the standard VAT rate of 19% has been reinstated for food services, resulting in increased prices for consumers.