Market Update - 04.09.24

CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION

• ·HOW SOCIAL MEDIA INFLUENCES THE TRAVEL DECISIONS OF MILLENNIALS: The study by We Road provides an overview of the extent to which social media, and Instagram in particular, influence the travel decisions of millennials. This generation uses social media intensively to discover new travel destinations and find inspiration. According to the survey, 84% of travelers search for their next vacation destination on Instagram. Visual content such as pictures, stories and reels play a decisive role in this. Almost half of respondents specifically follow travel influencers for inspiration, although only a small proportion admit to being heavily influenced by them. One interesting aspect of the study is the growing need for authenticity. Many travelers are disappointed by the overcrowded Instagram hotspots and long for genuine, unadulterated experiences, far removed from staged perfection. This development presents travel providers with the challenge of providing authentic and transparent insights into their offers in order to meet the expectations of modern travelers. Read more

• FTI INSOLVENCY PROCEEDINGS STARTED – END FOR 700 EMPLOYEES: The insolvency of FTI Touristik GmbH and Big Xtra Touristik GmbH has had a massive impact: Around 700 employees are losing their jobs and the company's mountain of debt amounts to around one billion euros. While insolvency proceedings have now been officially opened, creditors, including many travelers and hoteliers, are facing low payouts. Despite the sale of company shares, the financial situation remains tense and operations are to be completely shut down by the end of the year. A creditors' meeting is planned for November 20, 2024 to discuss the next steps. Read more

• BUYING MOOD IN GERMANY DROPS SIGNIFICANTLY IN AUGUST: The consumer mood in Germany deteriorated significantly in August, according to the latest consumer climate study by the GfK and NIM institutes. The consumer climate index fell to minus 22 points, which represents a deterioration of 3.4 points. The reasons for this are rising unemployment, increasing insolvencies and negative economic prospects, which are increasing fears of job losses and economic uncertainty.These developments are leading to a greater propensity to save and less consumer confidence. At 16.2 points, the fall in income expectations was the sharpest for almost two years, indicating a more pessimistic assessment of the financial future. Read more

• GERMANS GOOGLE THESE DESTINATIONS: According to an analysis by TUI Group, the most searched flight destinations by Germans on Google are clearly European. Mallorca tops the list with an average of 49,000 searches per month. Other popular destinations are London (33,100 queries), Istanbul (27,100), Barcelona (22,200) and Vienna (14,800). Lisbon, Rome and Antalya (12,100 inquiries each) as well as Paris and Sardinia (9,900 inquiries each) are also among the top ten. Beach vacations in the Mediterranean are particularly popular at the moment, as TUI Germany CEO Stefan Baumert emphasizes. Read more

• HOW AI CAN BE USED MORE INNOVATIVELY: Artificial intelligence (AI) is currently mainly used to increase efficiency, but its full potential lies in its ability to drive innovation. Instead of just saving resources, the capacities gained through AI could be invested specifically in the development of new solutions. One example of this is travel sales, which is currently still largely undifferentiated. However, future AI-based sales solutions could generate precise suggestions for individual customers from billions of combinations of offers, which would revolutionize and significantly improve the entire sales process. Read more

• COUNTRIES WITH A HIDDEN TOURIST RECORD: Spain is known for its mass tourism, but countries such as Austria and Croatia have much higher tourist rates per inhabitant. In Austria there are 3.4 tourists per inhabitant, in Croatia even 4.3. In comparison, the rate in Spain is 1.8, in France 1.5 and in Italy almost 1:1. Cities such as Dubrovnik are particularly overcrowded with 27 tourists per inhabitant, followed by Rhodes and Venice. While Germany is comparatively less affected, smaller countries such as Malta, Cyprus and Monaco are also heavily burdened. Austria's tourism is mainly dominated by German guests, with over 57million overnight stays per year. Read more‍

• ‍COUPLES’ FORMATION EXPLICITLY ENCOURAGED: Under the motto “Love is in the air”, WDR broadcaster 1Live is organizing a short trip to Croatia for singles in collaboration with tour operator Alltours. The 140 participants who register via the station's Loveplane page can find their ideal travel companion. The Düsseldorf-based tour operator Alltours is launching the Loveplane atPaderborn/Lippstadt Airport, with destination Split and the Sentido KaktusResort. The program includes pool and beach parties, with the first partystarting at the departure airport gate to initiate the couple formation. Read more

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CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• THERE WERE MANY MORE TRAIN DELAYS WITH A9-EURO TICKET: Accordingto a study by the Ifo Institute and the universities of Erlangen-Nuremberg andSalzburg, the 9-euro ticket, which was introduced for three months in summer2022, has had mixed effects. Although the ticket reduced car traffic by four tofive percent, the increased number of passengers led to a significant rise intrain delays of 30 percent. Regional traffic was particularly affected, whichalso had an indirect impact on long-distance traffic. Almost 430,000 morepeople took the train every day than before, especially at weekends, while thereduction in car journeys during commuting times was small. The studycriticizes the 9-euro ticket as an expensive and inefficient measure, as itcost the federal government 2.5 billion euros and reduced car traffic onlyslightly. The Deutschlandticket is expected to have a similar, weaker effect,as it will primarily benefit existing users of local public transport. Read more

• GLOBAL AIR TRAFFIC CONTINUES TO GROW IN JULY: In July 2024, global air traffic recordedgrowth in demand of 8% compared to the previous year, according to theInternational Air Transport Association (Iata). The load factor of flights roseslightly by half a percentage point to 86%. Demand, measured in revenuepassenger kilometers (RPK), increased by 8%, while available seat kilometers(ASK) grew by 7.4%. The IT outage at Crowd Strike on July 19 had no significantimpact on demand. Internationally, demand rose by 10% and capacity increased by10.5%, while the load factor fell to 86%. Domestic demand rose by just under5%. The Asia-Pacific region recorded the strongest growth with an increase of19%, followed by Europe with an increase of 8.3%. Demand on the Europe-Asiaroute grew the fastest. The Middle East airport saw an increase of just under6%, while North American airlines experienced an increase in demand of justover 5% with a capacity increase of 6.3%, with a load factor of 89%, thehighest among the regions. Latin American airlines saw an increase of 13% andAfrican airlines increased by 7.4%. Read more

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DESTINATION NEWS

• PORTUGAL: Operations at Portugal's airportswill be severely disrupted on the weekend of August 31 to September 1, asnationwide strikes by check-in staff have been announced. The German ForeignOffice warns that there could be considerable disruptions or even a completesuspension of air traffic. Travelers should check their flight status regularlyand, in the event of flight cancellations, choose between a refund of theticket price and free replacement transport. Alternatively, other means oftransport or flight connections with other airlines can also be used. In theevent of longer waiting times or overnight stays at the airport, travelers areentitled to care services and possibly hotel accommodation. However, thequestion of additional compensation payments is controversial and depends onwhether the situation is considered an “extraordinary circumstance” that isbeyond the airline's control. In the case of strikes by airport staff, thechances of compensation tend to be lower. Read more

• BHUTAN: Bhutan,which has become increasingly important for tourism since the introduction ofDrukair in 1983, is aiming for a rapid rebound in visitor numbers to 320,000,after a decline to 103,000 last year and 80,000 in the first half of 2024.Under the leadership of Carissa Nimah, who has been responsible for tourismmarketing since fall 2022, the country is focusing on new strategies: anenvironmental fee of 100 US dollars per day per person, numerous marketingcampaigns and an expanded flight connection to Dubai. Bhutan wants to targetguests from the USA and Western Europe and plans to open up all 20 regions ofthe country to tourism. A new online portal and the expansion of Drukair'sflight schedule are intended to support this. The visitor profile isincreasingly changing from older people interested in culture to families andthose with a special interest, while hikers from Germany and Switzerlandcontinue to be strongly represented. Read more

• ESTONIA: Estonia has secured first placein this year's Environmental Performance Index (EPI), a ranking conducted byYale University that evaluates 180 countries based on 32 environmentalindicators. The Baltic country impresses with its sustainable practices in theareas of renewable energy, waste and water management and nature conservation.The Estonian Tourist Board emphasizes that sustainability in Estonia is notjust a trend, but a way of life. The capital Tallinn, awarded the title of“Green EU Capital 2023”, and Tartu, Capital of Culture of the Year, contributeto the success with their environmentally friendly initiatives and smarttransportation systems. In addition to its commitment to the environment,Estonia also offers a rich cultural program, including the “Tallinn FringeFestival” with over 200 shows. The country's natural beauty is evident in itsnational parks, forests, bogs and coastlines, which offer a variety of outdooradventures and wildlife spotting. Read more

• SCANDINAVIA: Vacationsin Scandinavia continue to enjoy great popularity among German travelers.According to a survey conducted by touristik aktuell among tourist boards, theScandinavian countries are experiencing strong growth. Innovation Norwayreports “very good growth figures” for summer and winter, and Visit Denmarkalso expects an increase for fall and winter, despite a less successfulmidsummer. Finland is showing strong growth in winter tourism in particular,supported by improved flight connections to Lapland, such as from Lufthansasubsidiary Discover Airlines and Easyjet. Sweden is also benefiting from itsincreasing popularity as a less crowded, cooler destination. According to VisitSweden, 27.7 million Germans see Sweden as a potential vacation destination,which is reflected in higher demand. Read more

• ‍SPAIN: Despite protests against mass tourism, Spain has seen a record number offoreign visitors this year. By July 31, the number of international guests hadrisen by 12% to around 53.4 million, according to the Spanish statisticsauthority INE. Spending by tourists and business travelers increased by almost19% to 71.1 billion euros. In July alone, Spain received 10.9 million visitorsfrom abroad, who spent around 15.5 billion euros, which represents a new Julyrecord. Most visitors came from the UK (10.5 million), followed by France (7million) and Germany (6.8 million). The most popular regions were Catalonia,the Balearic Islands, the Canary Islands and Valencia. Despite the protestsagainst mass tourism that took place in various vacation regions, includingMallorca and Barcelona, the tourism sector is proving robust. The protests,which were often triggered by housing shortages and congestion, have notaffected the influx of tourists. Tourism accounts for almost 14% of Spain'sgross domestic product; in the Balearic Islands, this figure is around 35%. Read more

• INDONESIA: From now on, all international travelers must fill out a healthdeclaration form when entering Indonesia. According to the DestinationManagement Company (DMC) Asian Trails, the “SATUSEHAT Health Pass” form must becompleted online. It collects personal data such as name, telephone number,passport number and arrival information, including airport, flight number andseat. Travelers must also provide information on symptoms and possible contactswith people who have contracted monkeypox (Mpox). After completing the form,travelers will receive a barcode which they must present at the airport arrivalcheck. Asian Trails recommends filling out the form before the flight to ensurea smooth entry process. Your body temperature will also be checked on arrival.If this exceeds 37.5 degrees Celsius, an additional health check will becarried out. These measures serve to contain new Mpox variants. Travelers whodevelop symptoms within 21 days of arrival should consult a doctor and presenttheir SATUSEHAT barcode. Read more