Rising Prices and Inflation – The Biggest Challenge for Hotels in Bulgaria in 2025/26

Rising prices of goods and services are already the most serious challenge for the hotel sector in Bulgaria, according to the results of the survey “Business climate in the hotel industry in 2025/26“, conducted by the Hotel Forum (HTIF) and the Bulgarian Association of Professionals in Hotel Management (BAHE) in February.

More than a third of the respondents cite inflation as the main problem for their business, ahead of the staff shortage, which ranks second with 28 percent. This is a significant change compared to previous years, the organizers comment.

In 2025, nearly 40% of the hotels operate with an average annual occupancy between 50% and 70%, and 28% have excellent occupancy of over 70% and 26% - below 50%.

The average price of an overnight stay in 2025 for 40% of the participants is between 100–200 BGN, and 30% operate with prices below 100 BGN. About 20% report an average price between 200 and 300 BGN, and 10% - between 300 and 500 BGN.

Nearly two-thirds of hoteliers have adjusted the prices of overnight stays within the inflationary levels (up to 10%).

Regarding prices, the policy will be for an increase around or below the annual inflation (up to 10%).

The analysis of revenues and expenses shows pressure on margins. For half of the hotels, revenues are at the levels of the previous year or with an increase of up to 10%, but according to 75%, expenses have increased by more than 10%.

Labor costs (60%) have the largest increase, followed by those for goods and services and utilities (18%).

The expectations for revenues this year are conservative. About a third of the hoteliers expect an increase of up to 10%, and another third - no change. The skeptics expecting a decline are increasing from 5% to 15%.

The majority of hoteliers (38%) cite inflation as the biggest challenge, followed by the staff shortage (25%). In third place is the decline in tourists from traditional markets (16%).

To solve the staffing crisis, hoteliers see a solution in raising salaries (33%), internships for students (33%), importing staff (20%), engaging the employment office and elderly people (15%).

For half of the hotels, the structure of tourists is balanced between Bulgarians and foreigners. The leading foreign market remains Romanian (50%), followed by Germany (30%), Great Britain, Turkey and Greece (25%), Israel and Poland (15%).

A quarter of the hoteliers are planning investments in a new hotel or expansion, and over half are planning renovations and upgrades.

The survey includes hotels with over 23,000 rooms (15% of the hotel base), mainly urban (36%) and seaside (28%), with a capacity of up to 100 rooms (60%), 4-star (40%).