Market Update – April 14, 2022

Market Update – April 14, 2022

Market Update – April 14, 2022 820 312 fame creative lab

Please note: The following information has been compiled from the most important German speaking Trade Media.

Short Overview Situation in Germany

  • The COVID infection numbers are currently going down after having reached an all-time high. the occupancy situation in hospitals is relaxed and death rates very low. About 75,9 % of the German population are now fully vaccinated.
  • On April 3 all restrictions were lifted, only basic measures stayed in place. However, most Germans still, for example, wear their masks indoors even when it is not required.
  • Germany’s geopolitical situation because of the war between Russia and Ukraine has led to much anxiety about the Germans‘ planning for 2022. It is not only the peace crisis that worries them, but also various aspects, ranging from the country’s energy supply to the highest inflation in the last 30 years, as well as the threat to the country’s economic activity after two years of pandemic.

 

Current major topics within the tourism industry in Germany 

  • ITB Berlin: The tourism industry is in for a strong summer 2022, even though Corona has changed travel behavior permanently: ITB Berlin and Statista Q dare to look into the future: Statista’s Mobility Market Outlook (MMO) forecasts that the global travel industry will grow by an expected 48% to more than $637 billion in 2022. In 2023, the industry will exceed the pre-crisis level by around 5% with almost $756 billion. In addition to cruises (+180% year-on-year), the strongest growth rates in 2022 are forecast for the hotel industry: at 57%, hotels, the largest market segment in tourism, are expected to grow faster than private and vacation rentals and package vacations. To that end, the private and vacation rental segment is expected to grow in total volume to over $81 billion, just 2% behind the 2019 market volume, according to MMO. It’s no secret that the pandemic has changed the entire tourism behavior of vacationers – nationally, as well as internationally. According to GCS, the coronavirus has impacted the travel behavior of 90% of travelers from Germany, the UK and the US. This influence seems to be manifesting itself: Only 31% of respondents from all three countries do not believe the change in travel behavior will be permanent. Read more
  • Recovery continues only in terms of sales: As shown in the Tats Travel Agency Mirror for March, total billed sales for covered travel agencies in March 2022 were down 40.2 percent from March 2019, while February’s figure still showed a 55.2 percent drop. Partial sales also show improvement. For example, billed tourism sales in March are 41.7 percent below the March 2019 figure, compared to February’s minus 55.5 percent. For the cruises sub-sector, the gap is 49.3 percent (down 62.6 percent). For air, the gap is 41.6 percent (down 56.4 percent), and for other sales, the gap is nearly 29 percent (down 47.8 percent). An improvement is also seen in cumulative billed travel agency sales from January to March, which are down 54.4 percent compared to 2019. From January to February, the gap was 62.4 percent. Tourism is currently at minus 51.4 percent here (65.6 percent), while cruise is at minus 59.6 percent (64.5 percent). Read more
  • Travelers‘ need for security is growing: The fact that Germans want to travel again is currently reflected in incoming bookings. However, the desire to travel is coupled with a strong need for security. This is shown by Hanse Merkur’s 2022 travel survey. According to the survey, 66 percent of respondents say their need for security has increased. „The survey results clearly show that Germans‘ desire to travel is returning in full force this year. For example, 86 percent have specific plans to go on vacation,“ explains Johannes Ganser, board member for cooperation and travel sales at Hanse Merkur. „At the same time, we’ve observed that people have been preparing differently since the start of the pandemic and are planning trips more carefully and cautiously.“ Other figures also show that the pandemic has not yet disappeared from people’s minds: Around a third of those surveyed said they found it difficult to look forward to traveling at all, while 31 percent of 56- to 70-year-olds even feared they would not be able to switch off properly on vacation because of it. Almost half are afraid that they will not be able to go on a trip because of the pandemic. In contrast, 41 percent of respondents distract themselves from this worry by planning their trip. Read more

 

Current major topics within the aviation industry in Germany and Europe

  • 80 percent of Easyjet flights are back: In its trading update for the six months to March 31, 2022, the Group reports positive results. Year-over-year losses have narrowed, and trading results are recovering since the easing of travel restrictions. It said 80 percent of fiscal 2019 capacity was achieved in March. The pent-up demand for air travel is noticeable in the increase in demand, he said. At the same time, customers are booking closer in time to their departure dates. „We remain confident that we will fly close to fiscal 2019 levels this summer and be among the winners of the recovery phase,“ said CEO Johan Lundgren. The airline increased the number of Easyjet flights sevenfold compared to the same period last year, to around 82,200, while the number of passengers rose from around 1.2 million to 11.5 million. Read more
  • The concerns of aircraft manufacturers: The U.S. aerospace company Boeing canceled 141 ordered jets from its order book in the first quarter. According to a spokesman, the reason for this was the Ukraine war and the associated Western sanctions against Russia. The orders have not yet been lost, according to a spokesman. But orders from customers in the region are now uncertain, he said. Boeing is nevertheless booked up for years to come, according to cash.ch. In March, the company received 38 new orders for aircraft and handed over 41 completed jets to its customers. Rival Airbus delivered 63 commercial aircraft in March. Group CEO Guillaume Faury, meanwhile, is warning Western countries not to put Titan on the boycott list. What would only be a pinprick for Russia would be a severe blow to the European aviation industry. Titanium is a key material in aircraft construction. According to aero.de, Europe’s aviation industry meets half of its needs in Russia. The light metal is resistant to temperature and corrosion. It is used in aircraft construction where high stresses occur, for example in engine mounts, landing gears, wings and engines. Russia is an important supplier of titanium, of which there are only a few worldwide. Airbus managers had already warned during the Crimea occupation by the Russians in 2014 that they had to free themselves from dependence. They said the company still had sufficient stock in reserve for the coming months. Airbus obtains around half of the titanium it needs from the Russian supplier VSMPO-Avisma. Boeing, on the other hand, has not purchased any titanium from Russia since the start of the war in early March. The company has broadened its supply network in recent years. Read more
  • Swiss wants to reduce food waste: Swiss is taking action to prevent food waste. To ensure that less food is thrown away on short-haul and long-haul flights in economy class in the future, the airline is introducing two new catering concepts from April 20, 2022. With „Swiss Saveurs Pre-Order,“ passengers can individually pre-order fresh products from the menu. The choice includes all fresh products such as salads, sweet baked goods or sandwiches, which are prepared according to recipes from the traditional Swiss company Confiserie Sprüngli. On the longer flights, there is a Beyondmeat burger. „Reducing waste and unnecessary food disposal play an important role in our sustainability strategy,“ says Tamur Goudarzi Pour, COO of Swiss. „With the pre-order initiative, we aim to further optimize the demand-driven production of fresh products to reduce food disposal on board.“ Read more

 

Destination news 

 

  • Iceland invites to workshops: The events will take place on May 10, 2022 in Munich and May 11, 2022 in Zurich. In addition to a joint breakfast, one-on-one meetings and networking are on the agenda. The events will be rounded off by a raffle.
  • DRV and fvw, TravelTalk invite to Tunisia: „Feel the magic of the south“ – under this motto, the German Travel Association (DRV) and fvw|TravelTalk are organizing a discovery trip to Tunisia in cooperation with the Tunisian Tourist Office. From May 6 to 11, 2022, tourism professionals will have the opportunity to get to know the endless expanses, untouched landscapes and the magical light of the desert. It goes to Tozeur in the south of the country.
  • Premiere of „TRVLX by ITB“ in Georgia: The partner country of ITB Berlin 2023 Georgia will be the first host country for the new series of in-market events planned by ITB Berlin in the coming months. The exclusive kick-off event will take place from 17 to 20 May 2022 in the country’s capital, Tbilisi, as well as other venues in the Caucasus nation.
  • Croatia: The EU and vacation country Croatia lifts almost all Corona restrictions. EU citizens can enter the country from next Saturday without the previously required proof of vaccination, recovery or testing.
  • Japan: Now the general ban on travelers from Germany to Japan, which has been in place for many months, has been lifted. However, the visa-free regime remains suspended for German nationals.
  • Malta: As of April 11, 2022, quarantine requirements will no longer apply to all travelers – including unvaccinated or partially vaccinated individuals.
  • Greece: From May 1, people in Greece will no longer have to show proof of vaccination when they want to visit restaurants, stores and museums. The requirement to wear a mask indoors, on the other hand, will not be lifted until June 1.

 

Just read on and enjoy! And if you have any doubt or would like to talk to us about how to approach these markets better, just get in touch with us. We’ll be delighted to help you.

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