Austria, Portugal, Italy, Germany, Switzerland and the United Kingdom are entering an increasingly difficult period for tourism businesses as Europe’s natural gas market experiences another sharp price shock. Hotels, restaurants, ski properties and other energy-dependent tourism businesses are heading toward the winter season with substantially higher wholesale energy costs, creating fresh pressure on operating budgets.
European benchmark gas prices climbed to their highest level since early 2023 this week. Dutch TTF front-month gas traded above €79 per megawatt-hour on September 9, while prices had risen more than 40 percent during the month, according to market reporting. The increase has been linked to disruption to LNG supplies and continuing instability around the Middle East and Strait of Hormuz.
The increase is arriving at a particularly sensitive point for Europe’s tourism industry, with many hotels preparing for the colder months when heating demand rises sharply.
Hotels Face Higher Energy Exposure
For accommodation businesses, energy is a basic operating cost that touches almost every part of the guest experience.
Heating guest rooms, warming water, operating kitchens, maintaining restaurants, running swimming pools and spas, and keeping common areas comfortable all require energy. In mountain destinations, the exposure can be even greater because the main winter tourism season coincides with the period when heating requirements are highest.
The pressure is therefore especially relevant to Austria and Switzerland, where Alpine resorts depend heavily on winter visitors. Hotels and resorts in destinations such as Innsbruck, Salzburg, Kitzbühel and the wider Tyrol region prepare for a season built around skiing, snowboarding, wellness and mountain recreation.
A prolonged increase in wholesale gas prices does not automatically mean an equivalent increase in hotel rates. Businesses have different energy contracts, purchasing arrangements and levels of exposure. However, the higher wholesale market creates a difficult environment for operators already managing labour, food, transport and other rising expenses.
Austria Enters Winter With Energy Costs in Focus
Austria is already responding to wider energy-price pressures.
The country’s Ministry for Economy, Energy and Tourism said on September 9 that rising oil and gas prices were again demonstrating how geopolitical crises can quickly affect European energy prices. The ministry also highlighted the importance of secure energy supplies, domestic energy resources, storage and diversified sources.
Austria’s official energy information shows household gas prices at €0.1223 per kilowatt-hour for August 2026, while electricity was €0.2794 per kilowatt-hour. These figures concern end-consumer energy prices rather than wholesale gas and therefore do not directly represent hotel operating costs, but they illustrate the broader energy environment facing consumers and businesses.
For winter travellers, the impact can appear in several parts of the holiday budget rather than in the room rate alone. Accommodation, restaurants, mountain transport and other services all operate within an economy affected by energy costs.
Portugal Also Moves to Cushion Energy Pressure
Portugal is experiencing the same European energy shock despite its warmer climate.
The Portuguese government announced on September 7 that it was extending measures worth more than €700 million to protect households and businesses from the rise in fuel prices. The government described the situation as an energy crisis affecting Portugal, Europe and the wider world and linked the pressure to geopolitical instability and dependence on fossil fuels.
Portugal’s tourism sector is entering this period after a strong July. Turismo de Portugal reported 3.4 million guests and 9.6 million overnight stays in July 2026, generating €923.7 million in total accommodation revenue.
That means the country’s hotels, guesthouses and tourism businesses are operating with strong visitor demand while simultaneously confronting higher energy costs.
Italy and Germany Remain Exposed
Italy and Germany are also significant parts of the European tourism economy affected by the energy environment.
Italy combines major city tourism with coastal resorts, mountain destinations and extensive hospitality infrastructure. Gas and electricity costs can therefore affect properties ranging from urban hotels in Rome and Milan to winter accommodation in the Dolomites.
Germany has an equally broad tourism market, covering city breaks, Christmas markets, wellness resorts, countryside tourism and Alpine travel. Higher energy costs can influence accommodation and hospitality businesses across all these segments.
Current energy-price comparisons show substantial differences between European markets. July data showed energy prices rising year-on-year across most EU countries, including Italy, Germany, Austria, Portugal and the Netherlands.
The UK Faces a Different Energy Challenge
The United Kingdom is also dealing with the consequences of higher European energy prices, although its market structure differs from continental Europe.
UK hotels face energy expenses alongside labour and other operating costs, while travellers are already sensitive to overall holiday pricing. Higher costs can affect accommodation providers’ margins even where businesses choose not to pass the entire increase directly to customers.
For British travellers heading overseas, the energy shock can therefore influence both sides of the trip: the cost of accommodation in Europe and the broader expenses associated with restaurants, attractions and transport.
Winter Tourism Watches the Gas Market
The European Commission said on September 3 that there was no immediate EU gas-supply security risk despite storage levels being lower than in previous years. It also noted that geopolitical uncertainty and the continued disruption of Qatari LNG production were contributing to significant market volatility.
That distinction is important for tourism. Europe’s immediate issue is not simply whether hotels will have gas or whether ski resorts will operate. The more direct concern for businesses is the price at which energy is available and how long elevated prices remain in place.
For travellers preparing winter holidays in Austria, Switzerland, Germany, Italy or other European destinations, energy prices are becoming another factor behind accommodation and holiday costs. The market remains fluid, with storage levels, LNG availability, geopolitical developments and winter temperatures capable of changing the price environment rapidly.
