Our figure of the month 03/2021: Sales in hospitality industry drop up to 50% in 2020

Accommodation sector (-45%) hit harder by Corona pandemic than gastronomy (-32%)

As one of the industry sectors mostly hit by the Corona pandemic, the hospitality industry suffered high sales losses in the crisis year 2020 compared to the record year 2019. Two lockdowns, the first in spring and the second which has started in November 2020 and will last at least until the beginning of March 2021, have led to severe sales declines. Besides, the re-opening of hotels, restaurants etc. as of May 2020 was only permitted in compliance with strict safety, hygiene, and distance rules. With a decline of -45%, the accommodation sector (WZ 55) was hit much harder than the gastronomy sector (WZ 56), whose sales in 2020 were around a third below the previous year's level.

Turnover especially in restaurants, snack bars and ice cream parlours (WZ 56.1) were supported by out-of-home sales and delivery services, which have been permitted throughout the lockdown periods, as well as an expanded range of outdoor catering services. The accommodation sector (WZ 55), however, had no way of avoiding the ban on overnight stays for tourists during lockdown and compensating for it. What is more, the business travel sector slumped sharply as a result of the cancellation of almost all trade fairs, congresses and the pandemic-related international travel restrictions. Especially hotels in big cities suffered severely form the lack in business travellers from home and abroad and led to revenue losses up to 65% above all in Berlin, Munich, Frankfurt am Main and Cologne.

The chart shows the development of sales by month and the lockdown phases, which varied in terms of length in time and in content depending on sector and federal state. Despite a rapid recovery after the first lockdown, sales remained at least 15% below the level of the record year 2019, even in the height of summer.

This evaluation is based on the sample of the Federal Statistical Office, which includes about 5 % of all enterprises in the hospitality industry, whereby only larger enterprises with an annual turnover of more than 150,000 € are included. The turnover and financial situation of the many small, owner-operated businesses in the hospitality industry could possibly be even more critical than for system catering or hotel chains, for example. Because it is likely to be more difficult for micro-enterprises to implement the high hygiene and safety requirements demanded by politicians and customers as well as digital handling of all business processes without high additional costs.

Other figures can be found here.