Here, they discuss the capital’s tourism market, the role of data and strategy, the city’s real target audience and why they believe the capital should build on culture, quality and repeat visitors rather than trying to position itself as a luxury destination.

BBJ: Through Microcosmos DMC and Realis WAM’s downtown hotel developments, you see both the daily operational side of tourism and the investor and developer perspective. How does this dual role give you a different view of Budapest’s tourism market?

Mihály Schrancz: Realis Group acquired Microcosmos DMC five years ago. The company is now 37 years old and is a key player in the market. We deal in corporate inbound tourism, and in this specialist segment, our company is perhaps the largest domestic player.

Andrea Schrancz: It is an extremely beautiful task: our team makes Budapest better known and sells it on international markets.

MS: In addition to creating the Canopy by Hilton hotel on Deák Ferenc tér, we have been and remain involved in several hotel developments in the city center through Realis WAM Fund Management. In line with our interests, we have a broad view of both the macro and micro picture in this industry. We know the detailed market statistics in depth: how many tourists arrive in Hungary, which are the most important source countries, how many rooms there are in total downtown, how many nights a tourist spends here, what the average room rate is, and so on.

AS: Through the daily operations of Microcosmos DMC, we see Budapest’s direct competitor cities and what they offer. In Budapest, we know every event venue and restaurant, their pricing, which guide will be right for which group, where the bus can stop, and where there is usually enough cleanliness for a city walk.

MS: This insight, together with my background in urban development, gives us a unique perspective on tourism.

BBJ: How can Budapest’s tourism performance be measured and interpreted more precisely? What data, statistics or market feedback would decision-makers and service providers need to build a more grounded strategy?

AS: There are already systems in place to measure tourism, including KSH, NTAK and mobile metadata-based measurements. The data flows to the Hungarian Tourism Agency. In addition to the domestic picture, these also provide a good comparison with the performance of neighboring countries.

One major problem is that only a small part of this data is public and transparent for market players.

MS: With the data at its disposal, the Hungarian Tourism Agency should act as a strategy maker and coordinator. Although excellent professionals work at the operational level today, the system’s functioning so far has often been erratic. The right system has not really come together in country image-building, communication, development policy or even the coordination of market players and the available resources have not necessarily flowed to the most appropriate places.

The goal is therefore twofold: Market players need to have access to data in much greater depth, and the operations of the Hungarian Tourism Agency need to be reformed and made transparent. There is a huge need for a well-functioning coordinating actor, but in a much better-structured system, where the cost-benefit strategy is clearly built up, and projects are not self-serving or selected on an ad hoc basis.

BBJ: Budapest is often positioned in a higher-prestige, even luxury direction. In your view, which guest segment should the city really target, and what should it offer to increase the number of guest nights spent here?

MS: Budapest is not a luxury destination, and it would not become one even at the cost of significant investment. The capital could be positioned much better as an obvious destination for the middle and upper-middle classes with high purchasing power who seek cultural experiences. It would also be an important goal to turn these guests into regular visitors, or, if you like, loyal guests. This would have a positive effect on both leisure and MICE tourism.

AS: The competitive advantage lies in the unique combination of our exceptional location on the Danube, the wonderful urban structure and architectural heritage, the cultural diversity, the bath culture and the attractive value for money. The most important task of the next decade is conscious brand-building based on these advantages, raising service quality and the coordinated implementation of strategic developments.

BBJ: Based on the direct feedback Microcosmos receives in its daily work, what do business travellers particularly appreciate in Budapest, and what regularly disappoints them?

AS: Tourists arriving here are regularly surprised by the beauty of our city center and the quality of our hotels and event venues. This shows that the base we can build on is good, but the untapped potential is great, because over the past one or two decades, we haven’t communicated this effectively. We need to make huge progress in this area.

What should be highlighted among the recurring criticisms is feedback on the city’s cleanliness. This is an area where visible results that improve the mood of both tourists and the local population could and should be achieved with relatively little money and without the need for long-term strategic planning.

BBJ: If you had to formulate a realistic but ambitious tourism vision for Budapest over a three- to five-year horizon, what kind of city would foreign business and leisure travelers see when they arrive?

MS: A city with well-organized tourism. Even before they arrive, they should encounter distinctive communication that speaks to them and makes it easy for them to decide that they want to come here.

They should arrive on a good-quality flight at a good-quality airport, from where access to the city is simple and comfortable. They should find more high-quality hotel rooms and a significantly smaller Airbnb supply. In the center, they should be welcomed by a fully walkable area, an experience zone with a clean, unified architectural image, where we offer controlled quality and high-standard services.

They should be able to walk down to the Danube-side parks, and here I am thinking of the projects prepared by the capital. They should be able to cross from Pest to Buda in a cultured way, for example, on new sightseeing boats designed specifically for the Danube. During the day, they could buy tickets for excellent exhibitions and in the evening for world-class concerts, opera or circus performances, all at a price that makes them feel it was worth coming here and, as I mentioned earlier, encourages them to return.

This article was first published in the Budapest Business Journal print issue of July 3, 2026.