Market Update - 27.06.24

CURRENT MAJOR TOPICS WITH THE TOURISM INDUSTRY IN THE DACH REGION

• GERMANS DON'T CARE AS MUCH ABOUT OVERTOURISM: According to the results of an online survey conducted by Yougov on behalf of the travel platform Evaneos, many German travelers are not familiar with the term "overtourism" or do not understand its meaning, especially older generations. Only around a quarter have had personal experience of overtourism, mainly younger age groups. The majority of respondents do not feel part of the overtourism problem (71%). Younger people are more willing to adapt their behavior, while older people are less inclined to do so. Most Germans are open to taking measures against overtourism, such as traveling outside the high season (79%) or choosing less crowded destinations (78%). However, traveling less or paying more for less crowded destinations are less accepted options. Overall, the survey shows that while overtourism is perceived in Germany, the willingness to make personal sacrifices to tackle the problem is limited, especially among older respondents. Read more

• FTI BANKRUPTCY - SWISS TOUR OPERATORS ALSO FILE FOR BANKRUPTCY: FTI Touristik AG and BigXtra Touristik AG, both Swiss subsidiaries of the FTI Group, filed for bankruptcy on June 26. This follows the insolvency filing of the German parent company FTI Touristik GmbH at the beginning of June 2024. All trips booked through these Swiss companies will be canceled, affecting around 13,000 bookings. Customer payments are secured via the guarantee fund. FTI Ticketshop AG remains unaffected by the insolvency and can continue to conduct business with an active IATA number. BSP flights that have already been issued remain valid and can be operated as planned. Read more

• NEW BOOKINGS BOOK IMMEDIATELY AFTER THE FTI BANKRUPTCY: Following the insolvency of the FTI Group on June 3, 2024, the German travel industry recorded a significant increase in new bookings. According to Travel Data + Analytics, new booking sales increased immediately after the news of FTI's insolvency became known. By the end of May 2024, the industry recorded year-on-year sales growth of 17% for the current summer season. The FTI bankruptcy apparently triggered a reaction among travelers, who quickly booked new trips, possibly to secure existing bookings or make alternative travel plans. This behavior shows the dynamics and quick adjustments in the travel industry in the face of such events. Read more

• A WHOLE RANGE OF INTERESTED PARTIES FOR LUXURY TOUR OPERATOR WINDROSE AFTER FTI BANKRUPTCY:  The Managing Director of Windrose, Christian Böll, stated that there are currently more than ten interested parties for Windrose. The sales process was initiated swiftly after mother company FTI filed for bankruptcy in the beginning of June 2024 with the aim of finding a new owner that fits its established luxury concept. Windrose, which is known for its high-quality cruise offering, wants to ensure continuity and excellent service through this transition. The interest of several parties underlines the attractiveness and potential of the Windrose brand in the luxury travel sector. Read more

• TUI EXPECTS A TREND TOWARDS EXOTIC DESTINATIONS: A trend towards exotic destinations is already emerging. "Asia and Africa are a particular focus for us, as many new TUI brand hotels are being opened here," says Stefan Baumert, CEO of TUI Deutschland. TUI will continue to focus on the expansion of its own hotel brands as an "important growth driver" in the future. Read more

• TURKEY - GERMAN HOLIDAYMAKERS AHEAD OF RUSSIANS FOR THE FIRST TIME: For Turkey, Germany is ahead of the Russian source market for the first time in the first quarter of 2024, reports Kaan Kavaloğlu, President of the Turkish Hotel Association Aktob. This change marks a significant shift in the country's tourism flows. At the same time, the next two source markets are also showing dynamic development. Read more

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• THREE NEW EDELWEISS DESTINATIONS IN WINTER: Edelweiss Airlines is adding three new destinations to its route network next winter: Sphinx International Airport in Egypt, Tunis in Tunisia and Salalah in Oman. In addition, the service to Northern Europe will be greatly expanded, especially to Lapland and Norway. Tromsø will be flown to up to five times a week, while Narvik will be served for the first time in winter. Bergen, on the other hand, has been removed from the winter flight schedule. On long-haul routes, Tampa Bay will remain in the program all year round, while Las Vegas will no longer be served. Vacation destinations in the Caribbean such as Cancún, Havana and Punta Cana are still well served. Read more

• MANY NEW CONNECTIONS FROM SMALLER AIRPORTS: Several airlines have launched new flight connections from smaller and medium-sized airports in Germany at the start of the summer. Since last week, Wizz Air has been operating a route from Leipzig/Halle to Bucharest with two flights per week. From September 30, the airline will also be offering flights from there to Tirana. There are new routes from Erfurt: Aegean will fly to Crete from June 20 to October 17, and Fly Lili will fly to Burgas in Bulgaria every Monday until September 9. Pegasus Airlines launched its first flights from Cologne/Bonn to Gaziantep shortly before the start of the summer. Bremen Airport has a new route: from June 25, Sundair will be offering flights to Varna on the Black Sea every Tuesday. Another new connection from Paderborn/Lippstadt will be to Pristina from July 5 to September 6, offered by Trade Air. Read more

• VIETNAM AIRLINES COULD FACE INSOLVENCY: Vietnam Airlines may be in serious financial difficulties. In 2021, the airline received favorable loans of around 147 million euros from commercial banks, which were refinanced by the central bank at a zero interest rate. Now there are problems with the repayment of these loans, and the government warns of significant risks, possible legal conflicts and damage to Vietnam Airlines' image if the repayment deadlines are not extended. It is therefore considering extending the repayments until the end of 2021 in order to accommodate the airline financially and avert potential insolvency risks. Read more

• ETIHAD - DÜSSELDORF BECOMES A YEAR-ROUND DESTINATION: Etihad Airways has announced that Düsseldorf will now be served as a year-round destination. Previously, the Arab airline was only represented in the winter flight schedule. From summer 2025, Etihad will fly on Tuesdays, Thursdays and Sundays with a Boeing 787-9. This decision marks an expansion of flight connections after Etihad resumed flight operations from Düsseldorf in fall 2023 following the coronavirus pause. Read more

• CONDOR SIGNS INTERLINE AGREEMENT WITH FLY DUBAI: Condor has recently signed an interline agreement with Fly Dubai to expand its partnerships with Gulf carriers. In the future, Condor guests will be able to benefit from a variety of new connecting flight options from Dubai, including destinations in Malaysia, Sri Lanka, Thailand and other regions in Africa, the Middle East, Central Asia and Southeast Asia. This cooperation also enables through ticket fares and through baggage check-in to the final destination. Read more

DESTINATION NEWS

• MALLORCA: Mallorca and the neighboring islands saw a 15.5 percent increase in holidaymakers in the year to May 2024 compared to the previous year, indicating a record year. In May alone, 1.7 million tourists visited the islands, an increase of 16.4 percent, and the hotel occupancy rate was an impressive 71.6 percent. Mallorca in particular stood out with over 6.3 million overnight stays. These rising visitor numbers have reignited the debate about the impact of mass tourism. While the number of foreign tourists rose by 20.2 percent to 1.6 million, the number of Spanish tourists fell by 8.5 percent. Read more

• BARCELONA: Barcelona wants to ban Airbnb offers completely. The mayor of Barcelona is taking action and issuing a decree banning the rental of vacation apartments throughout the city until the end of 2028. Existing licenses for Airbnb and other rental offers for tourists would no longer be renewed. Mayor Jaume Collboni said that rental prices in the Catalan capital have risen by almost 70 percent in the last ten years and purchase prices by around 40 percent. In addition, around 6,000 apartments are being rented out illegally. The city council therefore feels compelled to take drastic measures to ensure access to affordable housing. The Barcelona Tourist Housing Association (Apartur) criticized Collboni's plans. These would "push the city into poverty and unemployment". The organization warned that the measures could also encourage the proliferation of illegal tourist apartments. Read more

• GUATEMALA: Warnings about Guatemala’s volcano tourist hotspot. Despite the impressive natural spectacles that attract tourists, the increased volcanic activity is becoming increasingly dangerous. Experts warn that the proximity to the active craters poses a considerable risk and that it is only a matter of time before an accident occurs. Despite previous deadly eruptions such as the one in 2018, in which up to 3,500 people died, the demand for tours remains strong. Local authorities regularly warn of the dangers, but economic interests dominate and there are no legal restrictions regulating access to the Fuego volcano. Read more

• SPAIN: Spain is taking measures to combat overtourism as more and more tourists flood the cities and annoy local residents. Cities such as San Sebastián, Valencia, Barcelona, Toledo and Santiago de Compostela are implementing various strategies to cope with the crowds of tourists. In San Sebastián, group sizes are limited on city tours and megaphones are banned. Valencia wants to reduce the number of mega-cruise ship arrivals. Barcelona is planning an anti-crowding warning system and is relying on online entry tickets for overcrowded sights. Toledo is discussing the introduction of a tourist tax for day visitors. Santiago de Compostela has not yet come up with uniform measures, but is also considering a tourist tax. Read more

• ITALY: Italy is facing an air traffic strike. Employees at numerous Italian airports will join a strike on July 5, initially only planned at Bologna Airport, according to crisis warning service A3M. Among others, air traffic control, ground staff and check-in staff will be on strike all day. The airports on strike include Milan, Rome, Venice and all those in the Calabria region. Read more

• CAMBODIA: In addition to a passport and visa, tourists entering Cambodia must also present a digital entry card from July 1. In the document called Cambodia e-Arrival (CeA), they must upload a photo of themselves and enter information about the duration of their trip and their location in the country. Once everything has been filled in, a QR code is generated, which must be shown on a smartphone or printed out. If travellers don't manage to do this in advance, tablets are available on arrival, which can be used to complete the form on site. Registration should be completed within seven days before entering the country. Read more

• BHUTAN: Bhutan is once again seeing strong growth in visitor numbers. Bhutan had increased its entrance fee (sustainability levy) from 65 to 200 US dollars per person per day after coronavirus. When the holidaymakers then stayed away, it was drastically reduced in two stages. The result: holidaymakers are now coming back. Bhutan welcomed 23,547 visitors in May, the highest monthly arrivals since reopening after the pandemic. From January 1 to May 31, the Himalayan country welcomed 64,941 guests, a significant increase compared to the 43,074 visitors in the same period in 2023. Read more