Austria's Tourism in Transition: Only Ski Holidays Were in the Past

The warm spell in December did not dampen winter bookings over Christmas and New Year into February, according to the Austrian Economic Chamber (WKÖ). "We've had the warm spell, namely the Föhn, so often - it's not an unknown phenomenon, it always gets cold in January," said tourism spokesperson Susanne Kraus-Winkler to the APA. Guests still come, but are overall more frugal. Higher prices are sometimes difficult to enforce.

Hospitality suffers from inflation

According to reports, domestic accommodation businesses are suffering from further rising costs for energy, personnel, and food, but largely have to bear them. "With prices, we are up against the wall," said the chairwoman of the federal division for tourism and leisure industry in the WKÖ in conversation with the APA. This is bad for the profitability of the providers.

Price increases difficult to implement

"Price increases, as they have occurred in the last three years, are no longer possible," noted the industry representative. After the coronavirus pandemic, there were initially price increases "in the double-digit range, over 10 percent," in hotels; then 5 to 6 percent. That is no longer possible: "Price enforcement is becoming more difficult here and there," the former tourism state secretary cautiously stated. Before Corona, prices rose by about 2 to 3 percent annually.

Everyone must save on vacation

The months of December, January, and February of the current winter season 2025/26 are "quite well booked," but March is "still open," Kraus-Winkler drew a first interim balance after consulting the industry. "The spas are actually also very well booked - even in Styria," reported Kraus-Winkler. However, corporate bookings are "noticeably declining." Companies are saving on seminars and events. And private guests are also watching their costs. Some regular guests have shifted their stays from high-priced to low-priced times.

Tourism industry representative: Vienna is "phenomenally booked"

City tourism is going very well. "Vienna is phenomenally booked in December," reported the industry representative. "The Christmas markets have established themselves extremely well and are driving demand." The federal capital is very strong in the 4- and 5-star hotel sector. Recently, the luxury hotel Mandarin Oriental Vienna opened in the city center, at the site of the former commercial court at Riemergasse 7.

No More January Slump

"Christmas and New Year's Eve is a classic holiday time in winter," said Kraus-Winkler, also referring to family vacations. "The sports holiday guests are coming more and more in January," observed the industry spokesperson. "The 'January slump' (the once traditional booking lull after the end of the Christmas holidays on January 6, note) no longer exists, because a high proportion of retirees come when the expensive holidays and school vacations are over," added Kraus-Winkler. February is usually the strongest month in winter due to the semester break. "From March, you usually have the topic of spring skiing," said Kraus-Winkler.

Valley Runs Are Melting Away

While the higher altitudes like Obertauern or Arlberg can still offer good slopes in spring, lower altitudes naturally have a harder time due to increasing warming. Even during the foehn weather in December, some destinations could not even produce artificial snow. For some areas in Lower Austria and a few areas in Styria, it is "rather difficult," admitted the entrepreneur. "Sooner or later, it will be such that you no longer have the valley run, but only go to the mid-station," said Kraus-Winkler, looking at less elevated ski areas.

Carinthia and Lower Austria Are Struggling

In her opinion, success or failure increasingly depends on what is offered on site: "I believe that the quality of the overall offer will determine international competition, and that federal states that are not so competitive will come under pressure," said the tourism expert. This partly applies to Carinthia and Lower Austria. "Where the offer is one-dimensional or less attractive, I hear that demand is becoming difficult." By "one-dimensional" is meant "just a room with breakfast in a destination that has nothing else to offer." In a city, that's okay, "but that no longer works in Klagenfurt," emphasized Kraus-Winkler. The infrastructure is only competitive if sufficient investment is made.

"Everywhere where the offer is good," it was "very well booked" this year in the months of December, January, and February, emphasized the industry spokesperson. The demand is right. "We must ensure that we maintain our quality and align ourselves very competitively," the WKÖ federal division chairwoman is convinced. In winter, people come to Austria not only for skiing. That was once the case.

(The conversation was conducted by Birgit Kremser/APA)

This article has been automatically translated, read the original article here.