Market Update - 02.05.24

CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION

• TRAVEL AND TOURISM MARKETING: moving away from "picture perfect": A recent VisualGPS study by Getty Images shows what younger generations pay attention to and what strategies travel brands and marketers can use to attract their interest. Travel and tourism marketers should consider this shift in consumer preferences when developing their communication strategies to effectively target their and/or new audiences. Read more

• HOW IMPORTANT SUSTAINABILITY REALYY IS FOR TRAVELERS: Booking.com has conducted a survey with more than 31,000 travelers from 34 countries and regions. According to the survey, 80 percent of German travelers (83 percent worldwide) say that sustainable travel is important to them. In the next twelve months, 60 percent of German travelers (75 percent worldwide) want to travel more sustainably. 36 percent of Germans (32 percent worldwide) want to do this. At the same time, 59% of respondents (45% worldwide) admit that they do not primarily focus on sustainability when planning or booking a trip. While 38 percent (43 percent worldwide) book a less sustainable trip with a guilty conscience, 34 percent (28 percent worldwide) said they were fed up with constantly hearing about climate change. As a result, 27 percent of Germans surveyed (33 percent worldwide) assume that the damage already done is irreversible and that their travel decisions will not change this. Read more

• THESE BUSINESS TRAVEL EXPENSES HAVE INCREASED THE MOST: A recent global analysis of data from payment service provider SAP-Concur shows that employee spending on business travel rose by 17% overall between 2019 and 2023. In Germany, the cost increase is 19 percent. The SAP statistics also show that spending on fuel (+37%) and entertainment (+30%) per expense report has risen the most since 2019. This is followed by events and car rental, which have seen cost increases of 28%. Overnight stays were 21% more expensive in 2023 than four years earlier. Surprisingly, business travelers only spent ten percent more on flights globally than in the past. However, at 716 euros per travel expense report, they were the largest item, while overnight stays cost around 130 euros. Read more

• GALERIA REISEN PROBABLY LOSES SEVEN TRAVEL AGENCIES: In the course of the insolvency proceedings at Galeria Karstadt Kaufhof, the decision has been made that a total of 16 department stores will have to be closed. The elimination of the department stores also means a reduction in the Galeria Reisen branch network, as the travel agencies are integrated into the department stores. Read more

• LOCAL TRAVEL AGENCIES REPORT: FAMILIES ARE CUTTING BACK ON TRAVEL BECAUSE MONEY IS TIGHT: Expensive holidays are increasingly forcing families to make compromises. A few days less, sometimes a holiday is cancelled altogether. Travel agencies report. In times when the cost of living has skyrocketed and travelling has also become more expensive, more and more families are apparently cutting their summer holidays short: "Many have a fixed budget for their holiday, which must not be exceeded," says Simone Burmeister from Simones Reisewelt in Hann. If a family with two children wants to go on holiday, the price increase is already noticeable," adds Burmeister. In order to still be able to travel, quite a few people have reduced their stay from 14 to 10 days, for example. Read more

• ECONOMICS MINISTER SEES GERMAN TOURISM ON COURSE: With calculated overnight stays in May expected to be 5.5 per cent higher than in 2019, there is reason for hope, said Habeck. The industry, which had been hit particularly hard by the effects of the coronavirus pandemic, is doing well again; the feared wave of insolvencies has failed to materialise and the many family-run and regionally rooted businesses have largely recovered. Read more

• ‍TRAVEL SALES REMAIN STRONG IN MARCH: According to Travel Data + Analytics (TDA), the volume of bookings remains at the previous year's level, although the previous year started quite late in the booking season and the volume was therefore disproportionately high in February and March 2023. According to market researchers, the shortfall in bookings compared to the pre-coronavirus level is also gradually decreasing for tour operator trips. In terms of sales, the current seasonal balances show good double-digit growth rates: both compared to the previous year - although continuing to decline as expected - and compared to the pre-corona level - which is already increasing due to price factors. Read more

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CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• LUFTHANSA WANTS TO SAVE AFTER HIGH LOSS: Lufthansa's quarterly figures do not look good, mainly due to the many strikes in recent months: The Group's operating result for the first three months totalled around minus 850 million euros, of which the core brand accounted for the largest share at 640 million, according to a report in Handelsblatt. The management of Lufthansa Airlines is therefore calling on the workforce to make savings. An internal publication obtained by the newspaper states: "We need significant profits in order to finance our necessary investments." Profitability is "far below what we need to invest in products, infrastructure and IT". In addition to the strikes, the Lufthansa management blames falling ticket prices, increasing competition and higher costs due to rising fees and personnel expenses for the poor development. Read more

• TICKET TAX: RYANAIR DEMANDS ADDITIONAL PAYMENTS: Because the tax on flight tickets will be increased in Germany on 1 May, Ryanair is making use of a passage in its general terms and conditions and is also charging the additional costs to customers with flights that have already been booked. According to media reports, the low-cost airline is demanding between €2.80 and €12.77 as an additional payment, the difference between the old and new tax rates. Read more

• FINNAIR CANCELS FLIGHTS TO TARTU DUE TO GPS MALFUNCTION: Finnair is suspending its daily flights to Tartu in eastern Estonia until 31 May. The Finnish airline has announced that this is due to GPS interference. A new approach procedure is now to be developed that will enable flights to be operated safely and smoothly without GPS interference. Read more

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DESTINATION NEWS

• JAPAN: In the hunt for the perfect photo, tourists repeatedly cause trouble outside a supermarket near Mount Fuji. Now the authorities are taking action. They are installing a black mesh net at the popular viewpoint. Read more

• PERU: Another fatal road accident has occurred in the Andes: During a journey on Sunday evening, a coach plunged down a slope in northern Peru and fell into a river. At least 23 people died in the accident and more than a dozen were injured. Read more

• DUBAI: Dubai has announced the start of construction work for a new terminal at Al Maktum International Airport. The airport is to be expanded to become the largest airport terminal in the world with an investment volume of around 32.5 billion euros. Read more

• ITALY: If you want to explore the Cinque Terre on the Italian Riviera in the high season, you have to be prepared for a new regime. Now the Cinque Terre, which is made up of five picturesque villages on the Ligurian Riviera, has issued new rules for travellers. Among other things, higher prices are intended to stem the flow of tourists. Read more

• BHUTAN: Holidaymakers no longer have to provide proof of travel health insurance. This proof was previously mandatory for visa processing. The new regulation is intended to streamline the travel procedure and facilitate entry. Read more

• GREECE: The Greek government wants to invest 2.1 billion euros in civil protection. Prime Minister Kyriakos Mitsotakis said this on Wednesday at the presentation of new measures by the Ministry of Civil Protection and Climate Change in Athens. The "Aegis" action programme is necessary because the climate crisis has long been here - it was experienced last year with the fires on the island of Rhodes and in the Dadia nature reserve, among other things. Read more

• KENIA: The continuing heavy rainfall in East Africa has led to devastating floods. A government spokesperson in Kenya reported on Wednesday that the number of people killed in the floods has now risen to at least 179. Around 90 people are still missing. Several important transport routes have been interrupted and almost 200,000 people have been left homeless because their homes were destroyed by the floods. Read more

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