Turkish Tourism: Hotel Discounts to Rekindle Demand

Faced with weak demand and domestic travelers’ discontent over high prices, hoteliers in Turkey are slashing prices to salvage the summer season. In a bid to attract more visitors, many hotels in popular tourist destinations are offering discounts of up to 30%, while others are launching special offers such as “Free One Night”.

Despite the summer season, which is traditionally accompanied by high demand, average hotel occupancy rates are between 70% and 80%, according to Turkish tourism industry representatives. Industry professionals acknowledge that the pressure on prices has led even the most luxurious hotels to join the discount wave.

Prices are deterring domestic travelers

The continuous increase in prices has made summer vacations prohibitive for many Turkish citizens. The cost of a seven-day trip for two people, including transportation, accommodation, and meals, now ranges from 70,000 to 100,000 Turkish liras (about $2,500). This has led many domestic travelers to cancel or postpone their summer vacations.

To stimulate demand, hotels continue to expand their advance booking campaigns with even deeper discounts, focusing especially on the most price-sensitive travelers. However, despite these efforts, the picture for this season does not look encouraging.

Tourism Traffic Slows Compared to 2023

According to Hamit Kuk, chief advisor of the Turkish Travel Agencies Association (TÜRSAB), the tourism sector’s performance this summer is noticeably lower than in 2024. “Last year we also had discounts, but by July the market had returned to normal. This year, we are seeing significant discounts even in July and August,” he points out.

Furthermore, for key Turkish tourism markets such as Europe and Russia, discounts reach 30%, while for domestic visitors, they are usually more limited in time. The high cost of catering and entertainment services, especially in popular seaside destinations, negatively affects travelers’ decisions.

“Europeans and Russians are well-informed consumers. They do their research before choosing a destination. Even social media influencers are posting receipts and prices from restaurants and beach bars. If we get a reputation as an expensive destination, it will be difficult to shake it off, and we could lose up to 15% of our tourist base,” Kuk stresses.

The impact of geopolitical instability

Geopolitical instability in the region is further weighing on Turkish tourism. Murat Göktuğ Aksu, chairman of the board of directors of JRO Yatırım, highlights that the war between Russia and Ukraine has led to a significant drop in arrivals from these markets, which are traditionally mainstays of tourism flows to Turkey.

In addition, recent tensions between Israel and Iran are negatively affecting arrivals from the Middle East, adding another uncertain factor to the country’s already fragile tourism image.

Industry experts acknowledge that this year's season will not reach the levels of previous years, despite efforts to revive demand through discounts. Accuracy, geopolitical tensions, and the rising cost of living for both locals and foreign visitors are shaping a difficult landscape for Turkey's tourism industry.