In June, the prices of Hungarian accommodation continued to rise based on data from the KSH. The average price of apartments was HUF 27,000 for two people, while boarding houses cost more than HUF 28,000.
It was much more expensive to relax in hotels. For 3-star hotels, you had to pay HUF 35,500, which included breakfast, while the average price of 4-star hotels was HUF 57,500 for two people, with half-board.
Boarding houses, apartments, and 3-star hotels have become more expensive by nearly 10% compared to the same period of the previous year. This is more than double the average increase in consumer prices. At the same time, the room prices of 4-star hotels “only” increased by 3% on an annual basis.
It seems that more and more Hungarian accommodations are priced close to the reservation price (around the maximum price level that consumers are willing to pay). This is indicated by the fact that 4-star hotels can no longer raise their prices. A further price increase could lead to a substantial decrease in demand.
Accommodations in Hungary have of course been hit in recent years by the significant rise in energy prices, the rise in the price of raw materials, and the increase in labor costs. And this year, the water fees are the cause of the cost increase.
In the coming months, prices may continue to rise due to seasonal effects, and the drop from last year’s record price level can practically be avoided in the case of most types of accommodation.
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
