Economy: Hospitality sales are falling - employees are reorienting themselves

The sharply increased prices for energy and food are increasingly noticeable in the hospitality industry.

Economy: Hospitality sales are falling - employees are reorienting themselves

The sharply increased prices for energy and food are increasingly noticeable in the hospitality industry. Adjusted for price increases (real), sales in August were 5.4 percent lower than in the same month of 2019 before the Corona period, as reported by the Federal Statistical Office. In nominal terms, i.e. including price increases, the industry recorded an increase of 9.2 percent.

The Wiesbaden authority explained that the price increases were reflected in the large difference. Compared to August 2021, sales increased by 16.9 percent in real terms and 26.2 percent in nominal terms.

Hotels and other accommodation companies recorded a real increase in sales of 1.2 percent in August this year compared to July. Compared to August 2021, sales increased by 11.8 percent and compared to the pre-crisis month of August 2019 by 1.8 percent.

In gastronomy, real sales in August were 0.2 percent lower than in the previous month. Compared to the same month last year, revenues rose by 19.3 percent, but they were still 6.6 percent below the level of August 2019. Overall, sales in the industry fell by 0.6 percent in real terms from July to August, calendar and seasonally adjusted and nominally by 0.2 percent.

Skills shortage and low wages

According to a union survey, more than a third of employees in the hospitality industry can no longer imagine staying in the industry any longer. Only 37 percent of those surveyed could imagine working in the industry for a long time, according to the Food, Enjoyment and Restaurant Union (NGG).

More than two thirds find the pay too low, 70 percent lack appreciation from their superiors. The survey was conducted online between early May and early August of this year. Nationwide, more than 4000 employees took part.

"If the majority of restaurateurs and hoteliers continue to act as if the shortage of skilled workers in the industry has nothing to do with them, the downward spiral of lack of appreciation, unlimited working hours and employee flight will continue," said the union chairman, Guido Zeitler, With.

The Corona crisis in particular has further exacerbated the shortage of skilled workers in the industry. The number of employees subject to social security contributions fell by more than 100,000 to less than one million in the first year of the crisis, according to data from the Federal Statistical Office. In the past year, the situation, especially in gastronomy, had eased somewhat. In the accommodation sector, on the other hand, the number of employees continued to decline. No current data is available for the current year.

According to the survey, more than 80 percent of those surveyed from the accommodation industry alone were already on short-time work during the pandemic. The rate was similarly high in gastronomy, slightly lower in the catering sector. According to the survey, there was no additional payment from the company during the short-time work for most of the participants.

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