Hotel and restaurant prices rise faster than inflation for last 10 years

25/11/2008 15:00

Prices in the hotel and restaurant sector have risen by more than 40 percent since 1998. Inflation (prices rises for total expenditure) was around 25 percent in the same period. In the last ten years prices rise in the hotel and restaurant sector have been almost consistently larger than inflation.

Inflation and prices rises in hotels and restaurants

Inflation and prices rises in hotels and restaurants

Canteen prices up most

Within the hotel and restaurant sector, prices in canteens had risen by most in October 2008 compared with twelve months previously. Prices rises for accommodation such as  hotels, holiday homes and camp sites were smaller.

Price rises within hotel and restaurant sub-sectors, October 2008

Price rises within hotel and restaurant sub-sectors, October 2008

Spending down

The volume of consumer spending in hotels and restaurants has not been larger than  twelve months previously since the third quarter of  2007, following two years of clear increases in spending on this category. In the second and third quarters of 2008, spending was even substantially lower. Spending on this category is very sensitive to economic developments. It is one of the first things consumers economise on in times of economic decline. The decrease in spending in hotels and restaurants in 2002 and 2008 especially were not only the consequence of economic downturn, but also of substantial price increases.

Consumer spending in hotels and restaurants (volume)

Consumer spending in hotels and restaurants (volume)

Prices rising across EU

Prices in this sector are not rising relatively strongly in the Netherlands alone; this is the case across the whole of the European Union. The increase in the price index of spending on the category hotels and restaurants was almost consistently higher than the increase in the European harmonised consumer price index (HICP). Germany was the only exception. Prices in German hotels and restaurants rose at nearly the same rate as average consumer prices.

Price increases (European Union)

Price increases (European Union)

Karlijn Bakker