TatilBudur Deputy General Manager for Sales and Operations Mustafa Kemal Çubuk said cost pressures have led to a decline in service standards at hotels in Türkiye.
Speaking at the Domestic Market panel held during the Istanbul Tourism Fair (ITF), Çubuk discussed the impact of the contraction in international tourism on the domestic market, TatilBudur’s growth targets and the effects of rising costs on the tourism industry.
Domestic market benefits from international market slowdown
Çubuk said the contraction in international tourism during the first half of the year due to cyclical and geopolitical factors had translated into growth in the domestic market, as seen in previous periods.
“We are all closing the year with significant growth,” Çubuk said.
However, he noted that the growth in visitor numbers had not translated into profitability.
Volume growth fails to translate into profitability
Çubuk said increases in hotel contracting costs and the cost of campaigns aimed at reaching customers had affected profitability.
“These are not periods that will be remembered very fondly, but I think each of us is pursuing a strategy of increasing our domestic market share in such periods,” he said.
He added that tourism companies were competing to offer customers a wider range of products and destinations.
“In this respect, it has been a very enjoyable year for TatilBudur because, as a company, we are a strong player in terms of product and destination diversity,” Çubuk said.
2027 international market outlook remains challenging
According to Çubuk, tourism professionals do not expect 2027 to be significantly better for hotels in the international market than 2026.
“No tourism professional expects a year that is better or ahead of this one,” he said.
He said geopolitical risks, exchange-rate policy and inflation suggested that hotels could face greater pressure in 2027, while attracting international tourists could become more difficult.
“2027 looks like a season in which hotels will be somewhat more strained in terms of geopolitical risks, exchange-rate policy and inflation, and the arrival of foreign tourists will become somewhat more difficult. This will once again create an opportunity for us to increase our volume and grow,” Çubuk said.
Cost pressures have affected hotel service standards
Çubuk identified the decline in hotel service standards caused by high costs as one of the less favourable aspects of 2026.
“I think there have been some declines in service standards due to cost pressures. My colleagues in the industry will probably agree with me on this. This is an issue we need to address in the medium and long term and take to a more advanced level,” he said.
Hotels urged to approach 2027 pricing cautiously
Çubuk said contracts for the 2027 season had largely been completed and that prices for individual properties would become accessible from October.
“Our advice to hoteliers is to set their 2027 agenda by reading the market correctly and taking the realities of the country into account, without getting overly excited about pricing,” he said.
Çubuk said TatilBudur had built its 2027 strategy around growth, with a focus on offering domestic customers a wider range of products and options.
