Economic challenges in German and Austrian service sectors

Economic data from July 2026 indicates significant challenges for the hospitality and retail sectors in Germany and Austria. In Germany’s Baden-Württemberg region, real turnover in hospitality fell by 4.5 percent, with gastronomy seeing a 5.0 percent decline, alongside a 0.8 percent decrease in retail turnover and a reduction in active employees. While nominal revenues in hospitality rose by 2.9 percent due to price changes, the real value declined.

In Austria’s Carinthia region, the retail sector shows signs of stabilization, following a national nominal increase of 2.7 percent and a real increase of 2.3 percent. However, local businesses in Carinthia continue to face pressure on profit margins due to high costs for energy, rent, financing, and personnel.

Broader structural issues are impacting the German gastronomy and hospitality sectors, including labor shortages and rising costs. Industry expert Uwe Steiniger noted that many businesses have historically struggled by “underpricing their services,” which has led to a lack of consumer trust when price adjustments are implemented. To address industry volatility, the Zukunftsinstitut has introduced a management model based on four archetypes—the Visionary, the Researcher, the Pioneer, and the Entrepreneur—to help businesses balance long-term direction with daily management.