Tourism industry faces digital shifts and rising operational costs

The tourism and hospitality sectors are facing structural and economic challenges regarding digital distribution and taxation. In Turkey, there is an ongoing debate regarding the weakening relationship between hotels and travel agencies. As hotels shift toward digital booking platforms to avoid commissions and pursue direct sales, industry observers note a potential decline in the quality of tourists. While digital platforms offer price comparisons, they often attract budget-conscious travelers, whereas travel agencies are credited with providing the professional guidance and experience sought by high-spending, loyal tourists.

Simultaneously, the industry is addressing rising operational costs, including energy, food, and personnel expenses. In Germany, the German Hotel and Restaurant Association (DEHOGA) has highlighted the importance of the VAT reduction on food, which became permanent as of January 1, 2026. Industry representatives argue that such tax reductions should not be viewed merely as a way to lower consumer prices, but rather as a vital support mechanism to help businesses manage high overhead costs, protect employment, and maintain economic viability.