Market Update - 29.05.24

CURRENT MAJOR TOPICS WITH THE TOURISM INDUSTRY IN THE DACH REGION

• BEST AGERS: HUGE MARKET POTENTIAL FOR TRAVEL AGENCIES: The tourism industry must focus more on the best agers and create tailor-made travel offers for this target group. At the “Rhein 66 Best Ager Conference” in Bingen am Rhein, it was emphasized that travel agencies play a central role due to their advisory expertise. TCWTF Secretary General Hüseyin Baraner emphasized that by 2034, almost 27 million people in Germany will be over 67 years old. Best agers have individual needs in terms of comfort and service, which requires tailor-made offers. Hanna Kleber and other experts emphasized that travel agencies need to be well informed in order to provide this target group with the best possible advice. Many destinations are already preparing to develop special offers for best agers. Read more

• WHAT PUTS GERMANS OFF GOING ON VACATION: Vacations are considered the best time of the year, but many Germans find traveling increasingly stressful. A study conducted by the market research institute Heute und Morgen on behalf of Hanse Merkur Reiseversicherung shows that 71 percent of respondents have found traveling more stressful in the last five years. The main causes are flight and train cancellations (56 percent), overcrowded beaches and sights and the fear of terrorist attacks (42 percent each). Lost or damaged luggage (41 percent) and annoying fellow travelers also contribute to stress. To reduce stress, travelers primarily rely on foreign travel health insurance (80 percent), avoid unsafe countries (80 percent) and use apps and digital travel assistants (79 percent). Other strategies include vaccinations, a full first-aid kit and thorough preparation for the destination. Read more

• WHAT THE NEW DERTOUR PLATFORM SHOULD ACHIEVE: The Dertour travel agency group wants to attract new customers digitally, especially those who would otherwise not go to a travel agency. To this end, it has launched the platform Reise-Spezialisten.com. On the website, consumers can answer several questions about their vacation planning, including desired destinations, type of trip, budget, departure airport and preferred vacation factors. An algorithm compares these wishes with the 1200 registered travel specialists. Customers can then select a “designer” and make a telephone or virtual appointment to plan their dream vacation. The aim of the platform is to bring new customers to stationary travel sales. Read more

• GERMANY IS IN TRAVEL FEVER: Germans' desire to travel is unbroken and stronger than ever before. Almost 80 percent of Germans over the age of 14 take at least one vacation trip per year. Spending on travel has risen from 73 billion euros in 2019 to almost 87 billion euros in 2023. On average, Germans will spend around 1,337 euros per person on their main vacation in 2023. The trend is towards early bookings rather than last-minute bargains, as prices are high and last-minute bookings can be more expensive. Long-distance travel and air travel are becoming increasingly popular, with Spain and Turkey in particular demand. Despite a theoretical emphasis on sustainability, it hardly plays a role in actual bookings. Read more

• THE BIG SUMMER CRISIS IN TRAVEL AGENCIES: Nach einem verheißungsvollen Start ins Jahr herrscht in der Schweizer Reisebranche Flaute, besonders im Sommergeschäft. Eine Umfrage von Travelnews zeigt, dass viele Reisebüros bei den Sommerbuchungen hinter dem Vorjahr zurückliegen. Obwohl die Buchungen für den Herbst zufriedenstellend sind, verzeichnen insbesondere Badeferien am Mittelmeer einen deutlichen Rückgang. Das schlechte Wetter im Frühling konnte das Sommergeschäft bisher nicht beleben. Einige Reisebüros berichten von bis zu 20 Prozent weniger Buchungen für klassische Sommerreisen im Vergleich zu 2023. Dennoch ist das Jahr insgesamt dank Kreuzfahrten und Individualreisen gut. Reisebüros hoffen nun auf einen verregneten Juni und Last-Minute-Buchungen, um den Rückstand aufzuholen. Read more

• THIS FALL BOOM WILL BE HERCULEAN TASK: eto Suter, editor at Travelnews, comments on the growing trend among the Swiss to shift their beach vacations from summer to autumn. This “fall is the new summer” trend is largely driven by climate change and changing travel habits influenced by the coronavirus pandemic. The rising temperatures in the Mediterranean during the summer mean that many travelers find autumn more pleasant for beach vacations. Although this may seem positive at first glance, this trend brings with it some challenges for the travel industry. While the peak summer season lasts seven weeks, the fall vacation season is concentrated into just three weeks, resulting in increased crowding. This means that the industry has to ensure high flight capacities in a very limited time. Another problem is the limited choice of suitable destinations in the fall, as some destinations are canceled due to lower temperatures. This leads to higher prices and a challenge for the industry to meet the growing trend with new solutions to meet travelers' needs. Read more

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• AIR FARES EIGHT PERCENT HIGHER THAN IN 2023 DURING THE SUMMER VACATIONS: According to the Check 24 portal, flight prices to the 30 most popular destinations during the summer vacations have risen by eight percent compared to the previous year. Prices for flights to the British Isles have risen particularly sharply: tickets to Edinburgh cost an average of 26% more this summer than in 2023. Flights to Dublin (+22%) and London (+20%) are also significantly more expensive. Travelers to Mallorca will pay an average of 14% more. Among long-haul destinations, Las Vegas is seeing a price increase of ten percent. In contrast, flights to mainland Greece are cheaper: tickets to Athens are 14% cheaper and to Thessaloniki 2% cheaper. Bangkok is the intercontinental destination with the biggest price reduction, with an average price that is four percent below the previous year's level. Read more

• AIR TRAFFIC AT GERMAN AIRPORTS CONTINUES TO GROW: In April, German airports recorded 17.4 million passengers, an increase of 2.3 million compared to the previous month, but still 18% below the level of April 2019. Compared to 2023, passenger numbers rose by 9%. Commercial flight movements increased by five percent, but only reached 80 percent of the 2019 level Domestic flights increased by 209,000 to two million passengers in April compared to March, but remained 47 percent below the 2019 level. European traffic grew by 20 percent compared to March to twelve million passengers, while intercontinental flights increased to 3.4 million. From January to April 2024, 57 million passengers were counted, twelve percent more than in the previous year. There were differences between the airports: Frankfurt and Munich grew significantly, while Friedrichshafen recorded declines. Read more

DESTINATION NEWS

• CHINA: Almost as many Chinese are expected to travel abroad this year as before the pandemic. ITB China in Shanghai is attracting great interest from industry representatives. Although the 2019 figures have not yet been reached, Chinese tourism is back. With an estimated 87 million trips abroad, the number of trips will more than triple compared to 2023. The desire to travel continues to grow despite economic challenges Europe is lagging behind Asia among Chinese travelers, mainly due to strict visa regulations and expensive flights. Japan and Southeast Asia, on the other hand, are experiencing a rise in popularity. Travel preferences are changing, individual travel is gaining in importance, as are niche markets such as health, wellness and culinary delights. The focus is on authentic experiences and culinary discoveries. Over 600 exhibitors from 80 countries will be presenting at ITB China. The trade fair has recorded an increase of over 60 percent compared to 2023. In addition, 13 destinations are attracting Chinese visitors for the first time, including Georgia, Romania and Peru. Read more

• MALLORCA: Thousands of people protested against mass tourism in Mallorca, with the number of participants exceeding expectations. The demonstration was also linked to the restaurant collapse at Ballermann, in which four people died. The event was organized by various groups who blame the influx of visitors and vacation homes for the housing shortage in Mallorca. The protest march took place under slogans such as “Let's say basta!” and “Mallorca is not for sale!” and was supported by trade unions, environmental groups and citizens' initiatives. Read more

• JAMAICA: Jamaica is recording a significant increase in tourist numbers. Tourism Minister Edmund Bartlett predicts that the island will reach a historic milestone of two million stopover and cruise visitors by the end of May. This increase is also expected to generate revenue of around two billion US dollars. Bartlett emphasises that these figures confirm the forecasts for 2025 and make the goal of reaching five million visitors and a turnover of five billion US dollars by then appear realistic. It will be the first time in Jamaica's history that the island has recorded two million visitors in the first five months of the year. Read more

• DEUTSCHLAND: The recovery of the German travel and tourism industry is significantly slower than that of many other major European destinations. This is according to the Economic Impact Research (EIR) 2024 of the World Travel & Tourism Council (WTTC). According to the study, the industry's contribution to Germany's gross domestic product (GDP) amounted to just over EUR 453 billion in 2023, which is EUR 13.5 billion below the 2019 level. According to the WTTC, the number of people employed in the travel and tourism sector rose by around 5% to 6.18 million. However, this figure is almost 250,000 below the 2019 employment level. International visitor spending last year was more than 25% below the 2019 level - €14 billion less was spent by international visitors compared to 2019. According to the report, the only bright spot for the German travel and tourism industry is the growth in domestic tourism. Spending by domestic visitors fully recovered in 2023 and exceeded the 2019 level by 2.9 billion euros. Read more

• SAUDI ARABIA: Saudi Arabia is striving to become a leading tourism destination with an ambitious strategy. Deputy Tourism Minister Mahmoud Abdulhadi explains the successes since the introduction of 'Vision 2030' eight years ago. Thanks to initiatives such as the e-visa program and the establishment of the Saudi Tourism Authority, the country has seen a rapid increase in tourist numbers. By 2023, Saudi Arabia welcomed 100 million visitors, seven years ahead of schedule. The tourism sector contributes significantly to GDP and employs over 925,000 people, while international tourist arrivals have increased by 56 percent compared to 2019. Read more

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