Market Update - 25.09.24

CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION

• TUI GERMANY REVEALS 6 BIGGEST TRAVEL TRENDS FOR 2025: The travel trends for 2025 show how diverse the travel behavior of Germans will be in the future. Social media, especially TikTok, is increasingly shaping the desire to travel by making trendy and unusual destinations viral. The combination of business and leisure travel, also known as bleisure travel, is gaining popularity as many professionals use business appointments to explore the surrounding area. Multi-generational travel is also trending, with families traveling together and sharing valuable experiences and costs. Solo travel is also becoming increasingly popular as it allows for independence and self-expression. In addition, more and more travelers are guided by their zodiac sign when planning their vacation, with astrology playing an increasingly important role. A survey by TUI and the market research institute Appinio shows that astrology plays an important role for many Germans when planning their vacation, especially among 18 to 44-year-olds. Overall, 25.3 percent of Germans stated that astrological influences affect their travel decisions. Interestingly, certain zodiac signs particularly often include astrology in their travel planning: 10.9 percent of Aquarians look to the stars to find the perfect time to travel, while 8.7 percent of Aries and 8.5 percent of Taurus use astrology to find places where they might expect to find love. In addition, 8.7 percent of Aries and 8.6 percent of Pisces check their so-called Astro-Carto-Graphy chart. Read more At the same time, domestic tourism is booming and many Germans are rediscovering the beauty of their own country. Overall, these trends reflect the fact that travel in 2025 will be more conscious and more diverse, whether in faraway countries or right on our own doorstep. Read more

• SUMMER, SUN, BEACH - THE MOST POPULAR DESTINATIONS: The travel boom this summer is clearly reflected in the booking figures of the major tour operators, which are back at pre-corona levels. Dertour recorded a remarkable 18% increase in guests compared to the previous year, with Turkey as the most popular destination. According to product manager Sven Schikarsky, 20% of holidaymakers opted for Turkey, with almost one in three family bookings going there. TUI also reported a record quarter, particularly following the insolvency of tour operator FTI, which enabled additional bookings to be made. Antalya replaced Mallorca as the most popular destination. Other popular short and medium-haul destinations included Spain, Greece, Egypt and Italy. Despite a drop in domestic demand, Germany remained in fourth place in terms of bookings. Poor weather conditions at the start of the summer season meant that many holidaymakers preferred sun-safe destinations. In Germany, Bavaria, Mecklenburg-Western Pomerania and Baden-Württemberg were the most popular federal states for summer vacations. A survey showed that almost half of consumers in Germany went on vacation this summer, with a third of them going on vacation in Germany. While many vacationers in the north of Germany spent their vacations on the coast or on islands, people in the south were drawn to the mountains. Family vacations were the most common type of trip at 37%, followed by beach and beach vacations and city breaks. In terms of expenditure, German holidaymakers spent around five billion euros in Germany, mainly on food, restaurants and leisure activities. A new trend, the “coolcation”, is also evident: more and more travelers are interested in cooler regions, which is reflected in an increased interest in Scandinavian countries, especially Norway. Dertour reported a 37% increase in bookings for long-haul trips, with the USA and Canada remaining the most popular destinations. Read more

• QTA PRESENTS RESULTS OF OVERTOURISM STUDY: The QTA has commissioned a survey on the attitude of travel agencies towards overtourism, in which over 750 agencies took part. The results show that almost two thirds of travel agency employees believe that overtourism will influence future booking behavior. However, almost 60 percent of respondents feel that the current measures against overtourism are ineffective or not effective at all. The results were presented by Markus Heller in a webinar on September 20. Read more

• HOW TRAVEL PRICES WILL CHANGE IN 2025: According to the “Global Business Travel Forecast 2025”, travel prices will continue to rise in the coming year, but at a more moderate pace. This will allow companies to better budget and control costs, although price stability remains fragile given geopolitical, inflationary and environmental risks. Airfares are rising slightly worldwide, with stronger increases in the US and Canada. Europe sees a moderate increase, while Asia expects smaller increases. Hotel prices will also rise globally, especially in South America. In Europe and the USA, demand for vacation travel will decline, resulting in more moderate price increases. Car rental prices are expected to increase by 2.5%, with regional fluctuations. The meetings and events sector will experience a price increase as companies plan larger events again. Read more

• TUI NOW COMMUNICATES RELEVANT EVENT: TUI has recognized the importance of effective communication with sales and is taking steps to improve this. Ilka Lauenroth, Head of Franchise at TUI Germany, has initiated a new communication system that informs travel agencies about relevant, travel-related events in the destinations. The aim is to act proactively instead of only reacting in crisis situations. The new system sends emails to around 7,000 agency partners when relevant events occur, such as announced pilot strikes or severe weather warnings for popular destinations such as Mallorca or Madeira. This communication is intended to ensure that travel agencies are informed of possible disruptions to the travel schedule at an early stage. Until now, TUI has only provided information in the event of major crises, but Lauenroth wants travel agencies to be warned before problems arise. Since the start of the program, which began three weeks ago, partners have received an average of one e-mail per week on current events. The feedback from the travel agencies has been consistently positive and TUI is continuously working on optimizing internal processes. From October, Lauenroth will also assume responsibility for all partner sales in order to further strengthen B2B communication between TUI and the travel agencies. Read more

• DERTOUR GROUP EXPECTS A RECORD YEAR: The Dertour Group expects a record result in the tourism division this year, as CEO Lionel Souque reported at the fvw|TravelTalk congress. After a loss of 600 million euros during the pandemic, the company achieved earnings before interest and taxes (EBITA) of just under 100 million euros in 2023. Consolidated turnover increased by 23% to 6.1 billion euros. Sales growth of over one billion euros is expected for 2024. Souque mentioned that the insolvency of FTI had attracted additional customers and emphasized that significant growth had already been achieved before the insolvency. The company has made numerous acquisitions in recent years, particularly in the hotel sector. When asked about the possible takeover of the Hotelplan Group, which is up for sale, Souque said that the situation was being monitored. The sale of the Hotelplan Group is in a decisive phase with several interested parties. Souque confirmed that the Rewe Group has further plans for future acquisitions, particularly with regard to hotels and specialist tour operators. In terms of company management, Souque emphasized that he is responsible for tourism on the Rewe Management Board, while the day-to-day business is managed by the Dertour Group's three-member top management team. Read more‍
• DERTOUR CUSTOMERS OPT FOR AFFORDABLE LUXURY: This summer, Dertour saw a clear trend towards higher-quality hotels, particularly in the five-star segment, which increased by five percentage points to 30% of bookings. More than half of customers (53%) opted for four-star hotels, which represents a decrease of two percentage points compared to the previous year. The proportion of three-star bookings fell to 17%. Sven Schikarsky, Head of Product at Dertour and its sister brands, explains that the demand for high-quality hotels with a high level of comfort and excellent service is increasing, especially in attractive destinations such as Turkey, Egypt, the United Arab Emirates and the Indian Ocean. Another notable trend is the popularity of all-inclusive dining, with 55 percent of holidaymakers choosing it, up from 48 percent last year. Breakfast remains the second most popular option at 24 percent, although it has dropped by five percentage points. Half board was booked by 21 percent of guests, a drop of two percentage points. Schikarsky added that Turkey accounted for 40 percent of all all-inclusive bookings this summer, followed by Egypt, Tunisia, the Balearics, Canary Islands and Bulgaria. The trend towards “affordable luxury” is thus clearly recognizable. Read more

• CHAMAELEON CAN SIGNIFICANTLY INCREASE TURNOVER: The Berlin-based adventure tour operator Chamäleon has recorded sales growth of 20 percent to 130 million euros for the current financial year with a total of 24,000 guests. The average tour price was an impressive 5,400 euros. This corresponds to a 15 percent increase in the number of guests compared to the previous year. Company boss Ingo Lies is confident that turnover will continue to rise in the coming year. For 2025, the company is planning for 27,000 customers and a turnover of 150 million euros. Read more

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE‍

• LUFTHANSA CANCELS FRANKFURT ROUTE TO BEIJING: Lufthansa is discontinuing flights from Frankfurt to Beijing, a withdrawal that has also been implemented by other Western airlines such as British Airways and Qantas. Group CEO Carsten Spohr announced that a final decision will be made in October. The main reasons for the withdrawal are massive competitive disadvantages compared to Chinese airlines, which are flooding the European market with flights and using the negotiated slots despite falling demand. This leads to a drastic drop in ticket prices, which European airlines can no longer make up for. Another factor is the Russian overflight ban, which is forcing European airlines to choose longer and more expensive routes. While Chinese airlines are still allowed to fly over Russia, Lufthansa and other European airlines are incurring higher costs for kerosene and personnel. In addition, the number of travelers to China has fallen sharply, especially business travelers, which further favors Lufthansa's withdrawal. In order to strengthen the tourism sector, China has abolished the visa requirement and is offering low fares and additional services. Although Lufthansa is giving up the connection from Frankfurt to Beijing, the connection from Munich will remain, as will the flights to Shanghai and the option of flying from Zurich to Beijing with Swiss. Read more

DESTINATION NEWS ‍

• ‍THESE SEVEN DESTINATIONS WILL BE IN DANGER IN 2034: Climate change is threatening many destinations around the world. The Maldives could be severely threatened by rising sea levels by 2034, but the government is investing in innovative construction projects and coastal protection measures. The Great Barrier Reef is suffering from coral bleaching due to rising water temperatures, but scientific initiatives are trying to breed more resistant corals. The Alps are also affected as glaciers melt and the snow line rises, but new artificial snowmaking technologies could help extend the winter season. In Venice, the MOSE system is being developed to combat flooding, while protected areas are being set up in the Arctic to preserve fragile ecosystems. The Galapagos Islands, a UNESCO World Heritage Site, are threatened by climate change, but strict regulations are helping to preserve biodiversity. The Florida Keys are investing in coastal protection projects and focusing on sustainable tourism to counter the effects of climate change. Global climate protection measures are crucial to secure the future of these endangered destinations. Read more

• MEXICO: Los Cabos, on the southern tip of Mexico's Baja California Sur peninsula, is aiming to triple the number of German visitors and is becoming increasingly attractive to vacationers. The region, known for its luxury hotels and breathtaking nature, already attracts many international visitors. In 2023, Los Cabos reached a record 3.8 million tourists, with the majority coming from the USA, Canada and Colombia. From November 3, 2024, Condor will fly twice a week from Frankfurt to Los Cabos, which will significantly improve accessibility for German holidaymakers. The flight time is around 13.5 hours and the new connections are expected to offer up to 16,000 seats per year. The region not only offers luxurious accommodation, such as the recently renovated One & Only Palmilla Resort, but also numerous outdoor activities, including whale watching, diving and golfing on 18 courses. Los Cabos consists of the two towns of San José del Cabo, a tranquil retreat, and Cabo San Lucas, a popular destination for entertainment. The impressive desert landscape and numerous nature reserves add to the region's special appeal. Read more

• TURKEY: Antalya remains the engine of tourism in Turkey and is on the verge of setting a new record for foreign tourist arrivals. Last year, around 16.5 million international visitors came to the region. According to media reports, this figure could exceed the 17 million mark due to high demand in October and November. In the first eight months of this year, 11.7 million arrivals have already been registered, an increase compared to 10.6 million in the same period last year. Hakan Saatçioğlu, President of the Poyd Hotel Association, emphasizes that tourism in Antalya has risen to a higher level in terms of both quantity and quality. He emphasizes that bookings for the coming months, especially from the European market, are promising and a successful end to the year is expected. Read more

• MALAYSIA: Tourism Malaysia is hosting a B2B event in Frankfurt on Wednesday, October 2. Starting at 2:30 pm, the program includes a seminar with industry insights as well as networking talks with Malaysian DMCs, hoteliers and other tourism providers. The event will end with a “Malaysian High Tea” where participants can enjoy special delicacies. Read more

• FRANCE: France's Tourism Minister Olivia Grégoire has published the summer tourism report for 2024, which highlights the positive impact of the Olympic Games on tourist numbers in Paris. During the Games, the number of visitors from abroad rose by 13 percent, particularly from China with an increase of 43 percent, while arrivals from Japan and the USA increased by 13 percent each. Domestic tourists also flocked to Paris and the surrounding area in large numbers. In July, spending by international visitors rose by eight percent compared to the previous year. Before the summer, cumulative spending by international visitors in France amounted to 32.5 billion euros, an increase of six percent compared to 2023. The French government expects to attract around 100 million tourists in 2024, up from 98 million in 2023. Read more

• GREECE: Greece recorded a noticeable increase in foreign tourist arrivals in the period from January to July 2024. In total, around 18 million international travelers visited the country, which led to an increase in travel revenue of 577.5 million euros to around eleven billion euros. Particularly noteworthy is the increase in arrivals from Germany, which rose by 13.2 percent to 2.6 million travelers. Arrivals from the UK also increased by 8.1% to 2.3 million, while France grew by 5.2% to 1.1 million and Italy by 13.8% to 990,700 travelers. Greece also recorded an increase in arrivals from the USA of 6.9% to 788,600 travelers. Travel via airports increased by twelve percent and border stations recorded growth of 9.9 percent. Read more

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