Germany's hospitality industry suffered a steep downturn in May, with real sales falling 2.1 percent compared with April, reversing a revised 0.5 percent gain in the prior month.
The decline was more pronounced year-on-year, as inflation-adjusted revenue dropped 6.0 percent compared with May 2025. The gastronomy segment bore the heaviest losses, with real turnover sinking 7.1 percent from a year earlier despite a nominal increase of 0.7 percent, signalling persistent pricing pressures. Hotels and other accommodation providers recorded a more moderate real decline of 2.8 percent year-on-year.
Nominal figures offered little relief, with overall sector revenue barely edging down 0.3 percent from the prior-year month, underscoring that rising prices have masked deeper weakness in customer demand. A reduced value-added tax rate of 7 percent on restaurant food has been in effect since the start of the year, though it has so far failed to offset the broader slump.