Turkish hotel industry faces shrinking profit margins

The Turkish hotel industry is facing significant pressure on profit margins as it prepares budgets for 2027. While occupancy and revenue remain key metrics, rising operational costs are eroding the actual profit per guest.

Between September 2021 and September 2026, the average Euro/TL exchange rate increased by approximately 456%, but costs have outpaced this growth. Specifically, the food and non-alcoholic beverage price index rose by about 744%, and employer costs related to minimum wage increased by approximately 857%.

An analysis of a sample all-inclusive business model shows that although net sales revenue per person increased from 100 Euro in 2021 to 120 Euro in 2026, the operating contribution per person dropped from 30 Euro to 16 Euro. This represents a nearly 47% decline in per-person operating contribution due to the rapid escalation of personnel, energy, and food costs.