- 30 Jun 2021 8:09 AM
- Hungary Around the Clock
He said hotels have learned to save money and operate more efficiently during the pandemic, and the industry has come together in the face of adversity.
Flesch, whose term will soon end, told the business website that it will take several years for the hotel industry to reach profit levels seen before the pandemic.
Higher revenues require higher average prices, which can only be achieved with high occupancy rates, but at present hotels are faced with rising costs, he added.
Budapest hotels, relying on foreign guests, reported 25-30% occupancy last summer and things did not improve in the autumn, he noted.
Flesch observed that there is a lot of uncertainty about the regulation of the short-term rental market and how many Airbnb units will reopen. If all such facilities were to reopen it would lead to massive oversupply, he added.
Flesch expressed optimism about the future of the industry in the long term, saying travel has become almost a biological necessity.