The past year has highlighted both the challenges and the resilience of the DACH hospitality sector. Germany and Austria have had to contend with sluggish growth, high energy costs, and persistent inflation, while broader geopolitical uncertainty – from international trade tensions to the ongoing war in Ukraine – continues to weigh on sentiment. Switzerland, by contrast, has remained comparatively stable, supported by strong domestic demand and its position as a high-value global destination. These differing dynamics illustrate the complexity of the region but also underline its importance as one of Europe’s most resilient markets.

Tourism policy issues rarely dominate the headlines—at least at first glance. Although tourism is generally associated with summer, sun, and sea, it is much more than that. As a cross-sector industry, it encompasses more than just the hotel and accommodation market, travel agencies, and the restaurant industry. Infrastructure, leisure and cultural activities, nature and nature conservation, public administration, and much more are also part of this diverse economic sector. This heterogeneity alone highlights the challenge for the industry itself, but also for those representing its interests in politics. At the same time, the political framework (laws, regulations, and subsidies) serves as a compass for tourism activities, and tourism policy therefore plays a central role for us as consultants.

Financial and technical difficulties, cost-cutting and layoffs, and now the leadership change recently carried out by the company. The former pioneer of tech-based design accommodations is no longer among the top performers within its niche. In stark contrast, the serviced apartment brand Limehome regularly makes headlines with high occupancy rates of over 90 percent, repeated acquisitions, or its consistently strong expansion across Europe combined with very good performance in the hotel industry. But what if Limehome and its followers such as Numa and others are facing a similar path as Sonder?

It is important to consider these wage increases both in the context of the past years (inflation) and also to recognize that inflation is already factored into these increases. Moreover, it is also understandable that an appropriate wage increases the attractiveness of the industry. Nevertheless, wage costs are often among the largest cost factors for hotels and, alongside other rising costs, contribute significantly to the financial pressure on businesses. This is reflected, among other things, in the approximately 1,200 insolvencies expected in the gastronomy sector in 2024, according to the information service provider CRIF. Unfortunately, no more recent data is available at this time. However, a clear pressure following the pandemic can be observed.

White-label operators are playing an increasingly important role in the hotel industry in Germany. But what exactly is behind this concept, and what opportunities and challenges does it present for the sector? We take a closer look at the key developments and their impact on the market.