Tour operators are scrambling to get out of the holiday season, amid plunging demand for accommodation and hotel rooms amid the escalating costs of accommodation and travel to Europe.
Tour operators in the Czech Republic are scrambling for alternative locations in the face of plummeting demand amid rising prices of accommodation, hotels and transport.
According to the Tourism Ministry, the total number of rooms booked in the country this year is projected to be 3.3 million.
That is a drop of 40% compared to the same period last year.
A spokesperson for the Ministry of Tourism in Prague told Business Insider that in 2016 the number of hotel rooms booked was 1.9 million.
The Tourism Ministry said this year’s decline is due to the number and type of rooms being booked.
In the previous year, the number was around 1.8 million.
Tourism Minister Petr Vakkola said the number is not necessarily related to the price of accommodation.
The Ministry of Industry and Trade said the decline is not due to a fall in hotel occupancy.
The decrease is mainly due to people using their holiday holidays to travel elsewhere, said the ministry.
In 2017, hotels in Prague offered an average of 6,200 hotel rooms per person.
Last year, that figure was 7,000.
The ministry added that the price increases have resulted in the closure of several tour operators.
It said the increase in hotel rates is largely due to an increase in the number, types and price of hotels in the region.
In the Czech capital, the prices of hotel room nights and other travel services has also been higher.
Prague, Prague City and Krasnoyarsk have seen increases of around 25% in hotel prices compared to 2016.
Pragmatists have been buying luxury accommodations at an average rate of 1,200 per night, with hotels now offering 1,500 per night for short stays.
The Czech Republic has had its worst year for luxury accommodation in the past five years, according to the European Commission.
Prachatai, a Czech tour operator that operates in the Slovak Republic and Austria, said it is closing its Prague offices and will stop booking flights in September.
Praca has told its staff that the Czechs tourism budget will not be able to cope with the increased demand and that all its services are not yet available.
The company said that the new budget is going to be announced later in the year.
The Czech Republic is not the only one to experience a price hike.
In 2016, the Czech government reduced the amount of money that could be spent on tourism by 20%.
The country’s economy is expected to shrink by more than 1.2% this year, according a study by the Czech National Bank.