Is Turkey Expensive in Tourism? The Real Risk in 2026 is Perception of Value Rather than Price
Sectoral

Is Turkey Expensive in Tourism? The Real Risk in 2026 is Perception of Value Rather than Price

S
StaffMag
September 02, 20269 min0

POYD executives state that Turkey should not be a "cheap destination" again in the 2026 season, but the rapidly rising TL costs and the gap between foreign currency revenues are challenging the price-benefit balance. TÜİK data also indicates vulnerability: in the second quarter of the year, the number of visitors decreased by 5.1%, tourism revenue fell by 2.6%, while overnight spending rose to $113. The central debate is no longer whether hotel prices are high, but whether the guest feels they are getting value for the amount they paid.

Is Turkey Expensive in Tourism? The Real Risk in 2026 is Perception of Value Rather than Price

One of the most debated questions in Turkey's tourism for the 2026 season seems simple:

Is Turkey expensive?

However, hotel operators, domestic tourists, foreign visitors, and tour operators view the same question from different perspectives.

The latest assessment by Yiğit Girgin, the Bodrum Representative of the Professional Hotel Managers Association (POYD), has brought this distinction back to the forefront. According to Girgin, Turkey's transition from being a cheap destination is not a problem in itself; the real risk is that price increases occur too rapidly while the benefits perceived by customers do not develop at the same pace.

POYD President Hakan Saatçioğlu also drew a similar line in August, stating that Turkey should not aim to be a "cheap destination" again, and that competition should be based on high service quality and the value offered to guests rather than low prices.

This approach brings an important distinction:

Being expensive and being perceived as expensive based on the service provided are not the same thing.

Official data shows demand is becoming fragile in 2026

TÜİK's second quarter data presents a picture that shows the price debate is not just a matter of social media perception.

In the April–June 2026 period, Turkey's tourism revenue decreased by 2.6% compared to the same period last year, falling to approximately $15.87 billion.

During the same period, the number of visitors leaving the country decreased by 5.1%, reaching 15.58 million people.

The average overnight spending of visitors staying in Turkey was $113. Accommodation expenses increased by 11.7% year-on-year, while food and beverage expenses rose by 5.2%.

There is a noteworthy situation here.

While the number of visitors is decreasing more rapidly, the decline in revenue is more limited.

This may indicate that the revenue generated per visitor is strengthening.

However, if total revenue is still declining, the limits of growth through merely raising prices begin to emerge.

Why is it necessary to raise prices from the hotelier's perspective?

The fundamental issue emphasized by POYD is the gap between costs and exchange rates.

Significant costs of tourism businesses are incurred in Turkey:

Personnel.

Food.

Energy.

Maintenance.

Cleaning.

Local supply.

Tax and social security burdens.

Financing.

While these items are rising in TL terms, a significant portion of the revenues of resort hotels in foreign markets is priced in euros or dollars.

If the exchange rate does not match the increase in internal costs at the same rate, even if a hotel raises its prices in foreign currency, it may not necessarily achieve more real profit.

POYD President Hakan Saatçioğlu stated in July that rising costs and exchange rate pressures threaten the profitability of hotels and future renovation investments. The association emphasizes that price pressure should be evaluated not only in terms of current season profits but also in terms of the investment capacity of facilities for 2027 and beyond.

This view is the assessment of the sector representative. The actual cost and profitability structure of each facility is different.

The tourist looks at alternative destinations, not the cost table

While the hotel operator has valid economic reasons to raise prices, it does not change the customer's decision-making process.

When making a reservation, the guest does not calculate the;

energy costs,

personnel expenses,

SGK burden

or financing interest

of the business in Turkey.

They look at where they can have a better holiday with the same budget.

For this reason, Turkey must compare its prices not with its own past but with Spain, Greece, Egypt, Tunisia, and other Mediterranean destinations.

POYD President Saatçioğlu also noted in the August assessment that Spain, Italy, and Greece recorded growth in the first six months of the year, and that Turkey's lagging behind cannot be explained solely by geopolitical developments. In the same meeting, he emphasized that instead of a flat per capita price increase in 2027 contracts, room categories, concepts, child ages, seasonal pricing, and additional services should be addressed in more detail.

This approach indicates a more advanced revenue management strategy than the classic "X% increase for every room" model.

Turkey does not have to be a cheap destination

From the perspective of the future of Turkey's tourism, rising prices are not necessarily a negative development.

In fact, competing with continuously low prices in the long term can create serious problems.

Cheap prices;

low employee wages,

deferred maintenance,

low-quality supply,

delayed investment

and low operating margin

are not sustainable if they are achieved.

POYD's view that "Turkey should not be a cheap destination again" is based on this economic rationale.

However, being a high-priced destination brings another standard with it.

Higher room prices also raise customer expectations.

Room maintenance.

Service speed.

Food and beverage quality.

Staff product knowledge.

Beach and pool experience.

Digital reservation process.

Complaint resolution.

Cleaning.

If any of these fall behind the price, the guest begins to question not the price, but the value.

Even if occupancy is high, the problem may continue

In 2026, especially discussions around Bodrum are a good example of this.

In the first part of the season, there were reports that the destination was empty; in the following weeks, however, some sector representatives announced that high season occupancy reached 90–95%.

However, high occupancy does not automatically mean high profitability.

While a hotel operates at 90% occupancy;

it may have lowered the average room price,

paid high commissions,

increased personnel and energy costs,

raised food and beverage costs

or postponed future maintenance investments.

For this reason, the indicator that the business should monitor is not only occupancy.

ADR.

RevPAR.

GOPPAR.

F&B revenue per guest.

Personnel cost ratio.

Energy cost.

Distribution commission.

Net operating profit.

should be evaluated together.

The exit of domestic tourists abroad should also be monitored

There is a measurable development on the domestic visitor side regarding the debate about the cost of vacationing in Turkey.

According to TÜİK, in the first quarter of 2026, the number of citizens residing in Turkey who traveled abroad increased by 13.1% year-on-year.

In the second quarter, the increase reached 16.5%, and the number of citizens traveling abroad rose to 3 million 434 thousand. During the same period, tourism expenditure increased by 7.4%, reaching approximately $2.96 billion.

This data does not alone prove the conclusion that "Turks are going abroad because Turkey is expensive".

The desire to explore new destinations, transportation options, visa conditions, campaigns, and changing travel habits also play a role.

However, it would not be correct to ignore the double-digit increase in exits from the domestic market.

For businesses in the Aegean and Mediterranean that are heavily dependent on domestic customers during the high season, prices of foreign destinations are now a real competitive factor.

Why is the debate about "foreigners staying cheaper" complex?

POYD Bodrum Representative Girgin points out that one of the reasons for the price difference is that foreign tourists purchase their holidays much earlier.

This mechanism is real.

A tour operator can buy capacity months in advance.

A hotel can obtain early cash flow.

In return, early period prices may be more advantageous.

However, explaining the cost of the holiday solely through early booking is insufficient for the discussion of price increases in 2026.

In the total cost of the holiday;

restaurants,

transportation,

beach clubs,

beach services,

additional activities

and other expenses within the destination

are also effective.

Therefore, explaining how hotel prices are determined does not alone solve the total price perception of the destination.

The question businesses must answer before raising prices

From a revenue management perspective, the approach of "last year we were 200 euros, this year let’s be 230 euros" is now insufficient.

A more accurate question might be:

What more value are we offering to guests paying 230 euros compared to last year?

This value does not necessarily have to be a luxury investment.

It could be reducing check-in time.

It could be improving breakfast quality.

It could be reducing housekeeping errors.

It could be strengthening employee training.

It could be offering more flexible pricing instead of complex packages that families do not use.

It could be responding to bad reviews more quickly.

What often allows the guest to accept the price increase is not expensive decoration, but the consistency of the experience.

The employee side cannot be excluded from the equation

The price debate in tourism is mostly conducted between the customer and the business.

However, service quality is produced by employees.

If a hotel reduces its staff excessively while raising prices, the guest may experience;

longer waits,

lower cleaning standards,

slow service

and more operational errors

in exchange for a higher price.

This directly weakens the price-benefit balance.

Therefore, trying to solve cost pressure solely by reducing employee expenses may improve P&L in the short term but could harm the higher price strategy itself.

In our opinion, the main question for Turkey's tourism should be "Are we expensive?" not "What price can we offer in which segment?"

Turkey's aim to become a cheap destination again is not a sustainable goal.

In a high-cost environment, freezing hotel prices may pressure employee wages, maintenance investments, or product quality.

However, raising prices alone does not necessarily mean transitioning to a higher segment.

A higher segment is not a price category, but an operational standard.

While the 2026 data indicates a decline in visitor numbers and total revenue in the second quarter, it shows that visitor spending has increased. This situation creates an important test for Turkey:

Will the higher revenue target be supported by better service and a stronger guest experience?

Turkey may lose part of its price advantage.

What it must not lose is the guest who believes they are getting value for what they paid.

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