Home » TOURISM NEWS » Tourism Industry in the DACH Region (Germany, Austria, and Switzerland) Faces Uncertainty: Decreased Confidence and New Challenges in 2025

Published on
September 13, 2025

Tourism in the German-speaking markets of the DACH region (Germany, Austria, and Switzerland) is experiencing heightened skepticism as the industry enters the 2025 summer season. According to recent insights from tourism consultancy Kohl & Partner, there has been a notable decline in confidence among businesses in Germany, Austria, and Switzerland. Although occupancy rates and revenue have remained steady, concerns about future prospects have intensified, reflecting shifting industry dynamics.

The DACH region has long been a hub for European tourism, with its scenic landscapes, rich cultural history, and well-established tourism infrastructure. However, recent data reveals that sentiment within the sector has taken a downturn, with many businesses expressing uncertainty about the industry’s future.

Declining Confidence Across the DACH Region

In a survey conducted by Kohl & Partner, nearly 300 businesses from Germany, Austria, Switzerland, and South Tyrol were asked to rate their optimism for the 2025 summer season. The results revealed a significant drop in confidence, with businesses rating their outlook at 2.8 on a scale of 1 to 5, compared to 3.2 in the previous year.

This decrease in sentiment is primarily driven by challenges in Germany and South Tyrol, where business owners have become more cautious about future market conditions. Austria, in particular, saw the lowest confidence score, with an average of 2.7. On the other hand, Switzerland showed relatively higher optimism, with businesses there maintaining an average score of 3.2.

One of the most striking trends observed was an increase in neutral assessments, reflecting uncertainty among tourism businesses as they face evolving market conditions.

Shifting Concerns: Last-Minute Bookings and Customer Behavior

A significant change in the challenges faced by tourism businesses has emerged in 2025. While staffing shortages were the primary concern in the previous year, the focus has shifted to customer behavior, particularly with regard to last-minute bookings.

In Germany, 58% of respondents pointed to overcrowding as a major issue affecting their operations, while Austria reported a similar concern at 55%. Businesses across the DACH region have expressed frustration with short-term bookings, which continue to disrupt planning and increase uncertainty. These last-minute trends have placed additional pressure on companies already dealing with rising staffing costs.

Interestingly, staffing shortages seem to be becoming less of an issue, as businesses adjust their strategies to cope with the evolving demand and behavior of travelers. The ongoing concern about customer behavior, including the preference for more spontaneous travel, has emerged as a central challenge for tourism operators.

Price Increases and the Impact on Budget-Conscious Travelers

In addition to customer behavior, the issue of price increases has become a key consideration for tourism businesses across the DACH region. Rising inflation has prompted many companies to raise prices, but the impact on consumer spending has varied. According to recent reports, more than half of businesses in all regions have been able to successfully implement price hikes.

However, in Germany, the acceptance of these price increases has been lower compared to other regions, with ongoing debates around Value Added Tax (VAT) contributing to dissatisfaction among customers. Despite these price hikes, businesses have managed to maintain a degree of profitability, though customer spending behavior has shifted noticeably.

Visitors are becoming increasingly frugal, especially in areas like dining and length of stay. In both Germany and Austria, around two-thirds of businesses reported seeing customers opt for shorter stays and reduce their spending on food and drink.

Regional Variations in Performance

The tourism industry’s performance in the DACH region has been mixed, with some areas seeing better results than others. In Switzerland, nearly half of the businesses surveyed reported improved occupancy rates compared to the previous year, marking it as the most successful region in terms of tourist traffic.

In contrast, Germany saw many businesses maintain their occupancy levels from the previous year, though a significant portion (over 25%) reported a decrease in bookings. The gap between the “winners” and “losers” in the tourism market remains wide, highlighting the disparity in how different regions and businesses are faring.

Winter 2025/26 Brings Hope Amid Uncertainty

Despite the challenges, the tourism industry remains cautiously optimistic about the upcoming winter season. Around 36% of businesses are expecting better results compared to the previous year, with only 17% expressing pessimism about the outlook for winter 2025/26. Many businesses are already reporting an increase in bookings compared to the same time last year, offering a glimmer of hope as the industry braces for the colder months.

While the summer of 2025 may have proven challenging for many, the broader tourism sector is looking toward the winter season with renewed hope. With nearly half of businesses maintaining or surpassing previous booking levels, the industry’s outlook for the winter season shows promising signs of recovery.

Final Thoughts: A Challenging Yet Resilient Industry

The tourism industry in the DACH region faces a mixed and uncertain future, with shifts in consumer behavior, rising costs, and fluctuating demand making it more difficult for businesses to predict the coming months. Despite these challenges, the sector’s ability to adapt and respond to the changing landscape, particularly as winter approaches, offers hope for recovery and growth.

The key takeaway for tourism businesses in the region is the importance of remaining flexible and responsive to consumer trends as the market continues to evolve. Whether it’s adjusting to last-minute bookings, managing price increases, or navigating customer expectations, businesses will need to stay agile to thrive in a competitive and unpredictable environment.