site.btaHotel Execs Report Growth in Both Revenues and Operating Costs

Some 31.8% of hotel executives polled in a recent survey said that bed occupancy in their hotels increased by up to 10% year on year. For 9.1% of respondents the increase was by between 10% and 20%. Another 16.7% reported a decline in bed occupancy by up to 10%. According to 32% of interviewees, bed occupancy remained basically unchanged.

The nationwide survey examined the hotel business climate in Bulgaria by the middle of 2024. It was conducted by the Bulgarian Association of Hotel Executives for the fourth year in a row, and the findings were unveiled at a national meeting of the sector, held in Plovdiv on Wednesday.

The survey covers 8% of categorized hotels in Bulgaria. One-third of them are situated on the Bulgarian Black Sea coast, and equal portions are in mountain resorts and in population centres across the country. About 40% of the hotels are categorized with three stars, another 40% have four stars, 15% are five-star establishments, and the remaining 5% have two stars.

Asked about revenues from tourism nights, 34.8% reported a year-on-year increase by up to 10%. No change in revenues was reported by 28.8%, and 13.6% boasted an increase by between 10% and 20%. A drop by up to 10% was observed by 15.2% of respondents.

Operating costs went up by up to 10% for 33.3% of respondents, by between 10% and 20% for 43% of respondents, and by more than 20% for 20% of those polled. The largest share of hotel executives (72.3%) said wage costs and social and health insurance expenses marked the highest increase. About 18.5% of interviewees registered a rise in product and service costs.

Another question was about the most serious challenge confronting the respondents' business in 2024. Approximately 50% of them complained of a shortage of skilled labour, and 22.7% said the number one challenge is the rise in product, service and wage costs.

According to 36.4% of hotel executives polled in the survey, the staff shortage can be offset by employing university students, and 25.8% believe that raising wages is a viable solution. Some 16.4% are inclined to employ foreigners.