How to avoid a 35% profit drop?

VAT increase hotel stays in 2026: from 9% to 21%

From 1 January 2026, the VAT rate for hotel stays in the Netherlands will rise from 9 to 21 per cent. This measure affects not only hotels, but also B&Bs, holiday homes and hostels. Without action, this could lead to an average drop in profits of as much as 35%. What can you do to avoid this? In this article, we list the options: From smart cost savings to enhancing the guest experience. Because one thing is for sure: doing nothing is not an option.

What will change from 2026?

The increased VAT rate for hotel stays will take effect on 1 January 2026. This also applies to prepayments and bookings with a stay date from that date. The impact is considerable: not only is a substantial drop in profits expected, but foreign tourists will also be more likely to opt for alternatives outside the Netherlands due to the higher rates. Hotels in border areas in particular are likely to notice this.

The central question is therefore: how do you ensure that guests continue to see the added value of your hotel and are willing to pay higher prices? Or: how can you reduce costs in such a way that you keep the cost per night the same, without compromising on quality or profit?

"If hotels do not cut their costs, profits are expected to fall by 35% on average." - Decisio (CELTH, Centre of Expertise), via Koninklijke Horeca Nederland

Sharpening cost strategy

One of the most obvious solutions to offset price increases and still maintain your profits is to cut costs. But that is easier said than done. Many hotels already manage costs keenly because the lower the costs, the higher the margin. So how can you optimise even further and cut costs without losing quality?

Staff: the biggest cost

Staff is usually the biggest cost, so optimising staff costs is a logical first step. Letting people go is rarely a sustainable solution, so rather look at using time and resources more efficiently. For example, consider cleaning robots for vacuuming and scrubbing - tasks that take up a lot of time. By automating these, cleaning staff can focus on high-quality work. Cleaning is faster, the physical load decreases, and absenteeism falls. It also leads to better dosing of cleaning agents, which is more economical and environmentally friendly.

Does a cleaning robot not fit within your capabilities? No problem. With targeted staff training, you can still combat waste. Think smart dosing when refilling dispensers. In sanitary facilities, you can make savings by opting for sheet-for-sheet hand and toilet paper, foam soap and delayed-use systems.

There are also sustainable alternatives such as thicker hygiene paper, which means you need less for the same effect. Combine this with smart cleaning processes for efficiency and speed.

Pay only for actual consumption

Understanding and monitoring consumption per room is a smart way to control costs. Programmes such as 'Pay Per Room' give you full insight into consumption per room. You pay a fixed price per occupied hotel room and avoid unnecessary stock. So you only order and pay for what you actually consume - without loss.

Highlighting added value and guest experience

Do you want to pass on the price increase in room rates and still maintain your occupancy rate? Then it is essential that you reinforce the added value of your hotel and the guest experience. Paying more is not a bad thing, as long as the guest is convinced of the value they get in return.

Everything revolves around the overall experience

It's all about the overall picture: the atmosphere, hygiene, service and attention to detail. Make sure your brand identity is visible everywhere - from personalised products and workwear to the right lighting and decoration of rooms and restaurant.

Hygiene plays a crucial role in this. A hotel can look great, but if it is not clean, guest satisfaction drops immediately. Make sure you have a well thought-out cleaning routine, use the right resources and avoid damage and streaks. From hotel rooms to restaurant, kitchen and shared areas: everything counts.

Experience is in the details

Want to go one step further? Then respond to needs that guests have not yet expressed. For example, offer women's hygiene products to the toilet or personalise the room experience with unique guest supplies. These are the finishing touches that make the difference between a "fine hotel" and a "real experience".

Doing nothing is not an option

If you want to maintain your profits and keep up your occupancy, it is necessary to choose a clear strategy. Whether you choose to cut costs or enhance the guest experience - action is required. Doing nothing is not an option.

Prepare with tailored advice

Have you already decided which direction you want to go in? Or could you still use some help? We would be happy to help you and look at the best solutions and possibilities together. Whether it is about saving costs, dosage and efficiency, or improving the guest experience - we think along with you. So that your company and your guests are not affected by this tax increase.

Contact us for tailor-made advice or to discuss options. Go to: www.facilitytradegroup.nl

Sources: Decisio (CELTH, Centre of Expertise) via Koninklijke Horeca Nederland, Ondernemersplein, Belastingdienst