In the first 9 months of 2023, both revenues and occupancy rates in hotels witnessed a decrease in Türkish hotels. Although establishments partially offset the income losses through price increases to some extent, the overall revenue decrease was around 6 percent.
Insufficient price increase
According to the analysis by Tourism Databank, while inflation exceeded 60% percent in the 9-month period of 2023, nightly prices in hotels increased by approximately 12 percent in dollar terms (around 90 percent in Turkish lira).
During this period, the cost increase in hotels also reached 85% percent. Despite hotels implementing nearly a 100 percent price hike in Turkish lira, they couldn't prevent the decline in revenues.
Overnight stays were impacted more than expected due to a significant contraction in the domestic market. According to estimates, revenues that exceeded 17 billion dollars in 2022 fell below 16 billion dollars in 2023. The total number of domestic and foreign overnight stays decreased from 192 million to 162 million.