Market Update - 04.07.24

CURRENT MAJOR TOPICS WITH THE TOURISM INDUSTRY IN THE DACH REGION

• GEBECO PUBLISHES FOUR LONG-DISTANCE TRAVEL CATALOGS: Gebeco has published the new 2025 long-distance travel catalogues for Africa & Orient, America, Asia and Australia & New Zealand. They contain more than 115 adventure trips, 40 study trips and 20 new tours. There is also a private travel catalogue with 50 tours worldwide and over 1,600 departure dates. New additions to the catalogue include trips to Peru and Bolivia, southern Africa, India and Indochina. Due to high demand, trips to China can also be booked again. Gebeco is providing travel agencies with a promotional package and is planning a webinar on the new catalogues for 16 July. Read more

• WINDROSE FINEST TRAVEL IS STARTING THE SUMMER WITH AN EXTENDED CITY BREAK OFFER: Regardless of the insolvency of its parent company FTI, Windrose Finest Travel is expanding its city break program for the summer. The new program includes well-known cities such as Florence and Venice as well as lesser-known destinations such as Porto, Bologna and Riga. Windrose also offers insider trips to cultural highlights such as the Prado in Madrid or the Sistine Chapel in Rome. For families, there are specially tailored programs such as "London with Kids" and "Venice with Kids", which combine child-friendly activities with the interests of the parents. In addition, the range of private jet holidays, which currently includes Seville, will be further expanded. Read more

• TUI LEAVES DRV INDUSTRY ASSOCIATION: TUI is leaving the German Travel Association (DRV) at the end of the year, which the association regrets. TUI justifies its withdrawal with criticism of the DRV's work and emphasises the need for a realignment in international competition. The group wants to strengthen the representation of interests in outgoing tourism and plans to intensify its political work in Berlin and Brussels. TUI complains about competitive disadvantages due to regulations and financial burdens that international competitors do not have. The DRV points up that it will continue to stand up for the interests of the industry.  Read more

• INCOMING BOOKINGS IN MAY SHOW STRONG GROWTH: At the end of May, the vacation travel market was strong despite the impending insolvency of FTI, with sales growth of 17% compared to the previous year, reports Travel Data + Analytics (TDA). Following the insolvency on June 3, sales of new bookings grew considerably, particularly for short-haul package tours to the Eastern Mediterranean. In May, growth for the summer season slowed slightly but remained strong, with a shift towards early bookers. Turkey and Egypt recorded an increase of 28 percent and accounted for 30 percent of all summer sales. Alexandra Weigand from TDA emphasizes that the FTI insolvency will leave visible traces and that everything depends on how quickly capacities can be reallocated and refunds made. Read more

• HOW THE TOURISM COORDINATOR CATEGORISES THE FTI BANKRUPTCY: The German government's tourism coordinator, Dieter Janecek, explained that the attempt to save FTI was initially successful, but ultimately had gaps that made insolvency unavoidable. Thanks to the German Travel Security Fund (DRSF), customers are now better protected than when Thomas Cook went bankrupt. Janecek emphasized that there was now a consensus within the German government that companies should not be placed under any additional burden as a result of the revision of the Package Travel Directive. Read more

• AER GROUP TAKES OVER SPECIALIST ABENDSONNE AFRICA: The AER Group has expanded its tour operator holdings by acquiring a majority stake in Abendsonne Afrika within AER-Reisewelt. Thomas Wiedau will assume strategic responsibility for Abendsonne Afrika, while Dirk Gowin will be responsible for product management and Achim Woschee for finance. The founders Liane and Michael Merbeck will remain involved in the company. In addition to Abendsonne Afrika, the tour operators of AER-Reisewelt also include Select Luxury Travel, Boomerang Reisen and A&E Erlebnisreisen. Read more

• FOREIGN TRAVEL REACHES PRE-CORONA LEVEL AGAIN IN 2023: With 102 million bookings in 2023, German trips abroad returned to pre-crisis levels, an increase of 18% compared to 2022 and 3% more than in 2019. Popular destinations were Austria, Italy, Spain, the Netherlands and France. Domestic trips rose by ten percent to 149 million, but remained eight percent below the pre-crisis level. In total, Germans took 251 million private and business trips, 13% more than in the previous year, but 4% less than in 2019. Read more

• TUI INVESTS IN OWN DISTRIBUTION: TUI Deutschland is investing heavily in its own distribution and has redesigned 50 branches this year alone. Some have been renovated, others completely rebuilt or relocated. The market leader currently has over 370 branches nationwide and has already redesigned locations in Berlin, Bremen, Freiburg, Münster and Munich. Aachen will follow in August and a new branch will open in Recke near Osnabrück in November. The aim is to combine modern technology and personal service, tailored to the needs of the core target groups. Read more

• HYATT TAKES OVER ME AND ALL HOTELS: Hyatt has acquired the Me and All Hotels brand from Lindner Hotels AG to strengthen its growth in Europe and enter new markets. Me and All is managed as an independent brand in Hyatt's lifestyle portfolio and currently comprises six hotels in central German cities. Further projects are planned, including a hotel in Berlin later this year and further hotels in Hamburg, Leipzig and Stuttgart by 2026. Hyatt is also negotiating further locations outside Germany. Lindner will remain responsible for the operation of the existing Me and All Hotels and plans to grow by 25 locations over the next five years. Read more

‍

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• FEWER DESTINATIONS CAN BE REACHED FROM GERMAN AIRPORTS WITH CARRIERS THAN IN THE PREVIOUS YEAR: According to an analysis by the German Aerospace Center (DLR), 466 routes were served in a selected week in January, compared to 485 in the previous year. Despite the decline in the number of routes, the total number of flights was increased by three percent due to an increase in frequencies. Domestic German routes in particular recorded a decline of five percent. Read more

• THIS IS WHAT SWISS PASSENGERS HAVE TO EXPECT THIS SUMMER: Although most flights are on time, the airline is struggling with punctuality problems: Almost every third flight takes off more than 15 minutes late, and the situation has been particularly tense in recent weeks. The causes are capacity-critical European airspace, weather conditions, staff shortages in air traffic control and geopolitical influences, which primarily affect long-haul flights. The operating situation at Zurich Airport is particularly challenging, with severely restricted operating hours and weather dependency leading to capacity bottlenecks. Swiss has taken over 80 measures to improve punctuality, including better flight planning, additional staff and improved weather forecasts. Nevertheless, the risk of baggage delays has increased due to problems in the new baggage sorting system at Zurich Airport. Read more

• CATHAY PACIFIC SOON DAILY FROM ZURICH TO HONG KONG: From October 27, 2024, Cathay Pacific will fly daily from Zurich to Hong Kong, which means an increase from four to seven flights per week. The airline is gradually returning to the route after the pandemic and offers good connections to destinations throughout the Asia-Pacific region. Cathay Pacific was voted one of the top five airlines in the world at the Skytrax World Airline Awards 2024, receiving awards for Best Economy Class and Cleanliness. Passengers enjoy comfort in Business Class, more space in Premium Economy and ergonomic seats in Economy Class. Read more

• AMSTERDAM PLANS TO HALVE CRUISE CALLS FROM 2026: Amsterdam is planning to drastically reduce the number of annual cruise calls from 2026. Instead of the current 190, only around 100 ships per year will be allowed to dock in the city center. The cruise terminal is also to be relocated away from the city center by 2035. Around 40 of the remaining calls are to be relocated to Rotterdam. The remaining ships are to use shore power from 2027. Read more

• CONDOR CEO: "THIS YEAR WE ARE GOING TO BE IN THE BLACK IN ECONOMIC TERMS": The new Condor CEO Peter Gerber is optimistic that 2024 will be a successful financial year and that the airline will be in the black. Despite challenges in the summer business such as flight schedule changes and cancellations, Condor is expecting growth. The number of employees has risen to around 5,700 and the number of passengers is expected to increase from eight million last year to around ten million this year. From July 23, Condor will offer its customers the opportunity to make a voluntary climate contribution when booking. Read more

• VIETNAM AIRLINES: RESTRUCTURING OFFICIALLY APPROVED: Vietnam Airlines has received the approval of the Vietnamese National Assembly for a financial restructuring and thus averted the threat of insolvency. The government loan of USD 157 million for the airline will be extended until July 2027 to implement the proposed restructuring measures. Vietnam's positive macroeconomic outlook is expected to help reduce losses and bring revenues in line with expenses. Vietnam Airlines plans to restructure its management, service and operations. After a record profit in the first quarter of 2024 and revenues close to pre-pandemic levels in 2023, the airline sees itself on a strong development path. Future plans include increasing capacity on tourist routes and expanding the route network, including new flights from Hanoi and Ho Chi Minh City to Munich from October 2024 and to other European destinations. Read more

• LUFTHANSA RECEIVES APPROVAL FOR ITA INVESTMENT: The European Commission has approved Lufthansa's planned investment in ITA Airways subject to conditions. Lufthansa will initially acquire a minority stake of 41 percent for EUR 325 million, with the option to acquire the remaining shares from 2025. The transaction is expected to be completed in the fourth quarter of 2024, subject to the implementation of conditions and the approval of further competition authorities outside the EU. As part of the agreement, take-off and landing rights at Milan Linate Airport will be transferred to a competitor in order to promote competition. ITA Airways is expected to become the fifth network airline to be integrated into the Lufthansa Group, creating new transfer opportunities, particularly to South America, North Africa and the Middle East. Read more

• NEW CEO IN THE SWISS COCKPIT FROM OCTOBER: Jens Fehlinger will become the new CEO of Swiss on October 1, succeeding Dieter Vranckx, who moved to the Executive Board of the Lufthansa Group on July 1. Fehlinger began his career at the Lufthansa Group in 2006 and has since held various management positions, including in the areas of strategy and business development as well as operational performance management. He is also an Airbus A320 commercial pilot and studied aviation systems engineering and management as well as transportation economics. Read more

• AUSTRIAN AIRLINES RESUMES NON-STOP FLIGHTS BETWEEN KLAGENFURT AND HAMBURG: Austrian Airlines will fly non-stop from Klagenfurt to Hamburg again next winter. The route will be served once a week on Saturdays from December 21, 2024 to March 22, 2025. Winter sports enthusiasts and Hamburg fans can look forward to the direct connection. The flights will soon be bookable under the flight numbers OS283 and OS284. Due to high demand, the route will be offered over a longer period this year. In addition, the connection between Klagenfurt and the Vienna hub will be maintained with up to 13 flights per week, creating additional transfer options. Read more

• BER BIOMETRICS: FASTER AND MORE CONVENIENT TO THE DEPARTURE GATE GROM NOW ON: Passengers at BER Airport can now use the BER Biometrics Service, which enables facial recognition for faster access to the departure gate. Using the "SmartDepart" app and an uploaded selfie, travelers can check in at selected stations in Terminal 1 and check in their baggage. However, the boarding pass must still be presented. The service is dependent on support from the airline and offers a practical alternative to the conventional boarding pass. Read more

• ITA AIRWAYS TO CONNECT ROME WITH BANGKOK IN FUTURE: ITA Airways is expanding its route network with flights between Rome and Bangkok from November 16, 2024. The new route will be operated five times a week. An Airbus A330-900 with 291 seats will be used, including 30 in Business Class, 24 in Premium Economy and 237 in Economy Class. The flights can already be booked and are available on Mondays, Wednesdays, Thursdays, Saturdays and Sundays. Read more

‍

DESTINATION NEWS

• SWITZERLAND: The landslide that has interrupted the A13 in Switzerland between Chur and Bellinzona has made one of the most important travel routes impassable. Due to the start of the summer vacations in Germany, Switzerland is expecting record traffic jams in front of the Gotthard tunnel, the most important Alpine passage. On the way to the Mediterranean, a wide bypass of Switzerland is recommended. Read more

• POLAND: Marcin Plachno will become the new Director of the Polish Tourist Board in Berlin on July 1, 2024. He previously headed the foreign representation of the tourism organization in Vienna from 2021 to 2024. Plachno succeeds Konrad Guldon, who left the office in February. In his new role, he will focus on promoting Poland as a travel destination in Germany. Read more

• MÁLAGA: Thousands of people have protested in Málaga against mass tourism and, above all, the housing shortage. According to the authorities, around 5,500 people gathered under the slogan "Málaga to live, not to survive". The organizers spoke of 25,000 participants, the daily newspaper El País of 15,000. The demonstration was described as one of the largest in the recent history of the Andalusian coastal city. The participants carried placards with inscriptions such as "Málaga is not for sale" and "This is not tourism, this is an invasion". Read more

• KENYA: Following the withdrawal of controversial tax laws in Kenya, unrest continues, accompanied by targeted police violence against demonstrators in which at least 23 people are said to have lost their lives. Despite the tensions, the Federal Foreign Office has not issued a travel warning, but strongly advises people to avoid cities such as Nairobi and Mombasa, where violent clashes and the use of firearms, water cannons and tear gas against demonstrators have occurred. Other precautionary measures include avoiding unnecessary travel and visiting safe places. The Kenyan Tourist Board is trying to reassure travelers by stressing that all airports, roads and train lines are open and not affected by the protests. Tourist destinations and attractions have also not been disrupted and are still accessible. Read more

• THAILAND: Suntrips, a brand of LMX, has expanded its Thailand program to offer new experience packages. Vacationers can now experience island hopping in the Andaman Sea and discover lesser-known islands. In addition, Suntrips is offering direct train connections from Bangkok to Chiang Mai in the north and Surat Thani in the south for the first time. For adventurers and those interested in culture, there is an exclusive round trip through the Isaan region. The range of private transportation has also been expanded to cover the north to the Golden Triangle and Pai and the south from Khao Sok National Park to Krabi. A new addition to the portfolio is Elephant Hills Bush Camp near Chiang Mai, which offers luxurious tents and all the amenities of four-star accommodation. Read more

• TULUM: Discover Airlines hosted an experience evening at the Fraport Visitor Center on Wednesday to present the new destination Tulum. From December 12, 2024 until the end of April 2025, Discover Airlines will fly non-stop from Frankfurt to Tulum every Thursday and Sunday. This direct connection is a new way to reach Tulum from Europe without detours via the USA or Mexico. More than one hundred travel agents from the Rhine-Main region attended the evening event to find out about the new destination and possible travel routes. Partners included TUI, Meiers Weltreisen, Vtours, Iberostar and Hyatt. Read more

• CROATIA: Croatia is introducing a digital toll system from 2025 to replace the conventional toll booths on the highways. The aim is to improve traffic flow, minimize waiting times and protect the environment. Travelers can choose between an e-vignette and an electronic toll box (ENC). Heavy commercial vehicles must use the ENC device. Modern technologies are designed to automatically register the vehicles and bill the toll correctly. Read more

‍