Market Update - 18.07.24

CURRENT MAJOR TOPICS WITH THE TOURISM INDUSTRY IN THE DACH REGION

• WHY TRAVEL AGENTS SHOULD REMAIN OPTIMISTIC IN JULY: Dr. Fried & Partner's Sales Climate Index shows a slight decline in July 2024 compared to the previous month, but the sales industry remains optimistic. Half of the travel agencies surveyed rate the current situation as good, which is a slight improvement on the previous month. 38.3% rate the situation as satisfactory and 11.7% as poor. For the next six months, 22.2 percent expect demand to increase, while 58.7% expect demand to remain the same and 19.0% expect it to fall. The slightly pessimistic outlook is partly due to the increase in air traffic tax in May 2024, which will make flying more expensive. Nevertheless, 26.3% of respondents expect revenues to improve over the next six months, particularly due to last-minute bookings, which have been boosted by the unexpected FTI insolvency. The Sales Climate Index is compiled monthly and travel agencies are invited to take part in the anonymous survey. Read more

• HOW GENERATION Z TRAVELS: According to a survey by management consultants Simon-Kucher, Generation Z, 18 to 25-year-olds, have different travel habits to older generations. At 6.5 days on average, they travel less than millennials (7.7) or baby boomers (9.5), but up to six times a year. They spend 14% less money, travel alone at least twice a year (24%) and value sustainability more (23%) than other age groups. Read more

• HOSPITALITY TRENDS - FROM LONG-TERM VACATIONS TO SUSTAINABILITY: The hospitality industry is adapting to the changing needs of travelers by picking up on new trends. The focus is on special target groups and sustainable business practices. Willi Verhuven from Alltours emphasizes the growing importance of the 60+ generation, which is increasingly demanding long-term stays. Allsun Hotels are responding to this with modernizations and special offers for best agers. Dertour Group CEO Karl Pojer sees a growing demand for authentic experiences and year-round beach vacations, which is why investments are increasingly being made in sun & beach destinations such as Turkey, Egypt and the Maldives. Finn Ackermann from Iberostar sees a trend towards higher-quality room types, while the topic of sustainability continues to be of great importance for the industry, as Laura Malone from Riu points out. Read more

• TRAVEL AGENCY SALES: JUNE WITHOUT BOOKING BOOM AFTER FTI BANKRUPTCY: Travel agency sales showed an unexpected development in June following the FTI bankruptcy. Although large travel groups such as TUI and the Dertour Group are talking about strong incoming bookings, the latest travel agency report from Tats shows a different picture: incoming tourism orders in June were down 11.3% on the same month last year, with a strong decline of 22.2% in new bookings in the cruise sector in particular. The total invoiced revenue of departures billed in June was 7.4% below the previous year's figure. Despite these figures, the cumulative total revenue of travel agencies is still up 3.1%. The bookings situation for trips up to October 2024 is positive: tourism bookings are up 6.7% on the previous year, and even 13.9% in the cruise sector. Read more

• THE SWISS ARE SATISFIED WITH THEIR TOURISM: A representative study on the acceptance of tourism shows that the majority of the Swiss population has a positive view of tourism and rates its importance highly. Switzerland Tourism was involved in the study. For the majority of respondents, tourism is not a problem, with only around five percent expressing concerns. The proportion of those concerned is higher in the tourist centers, where issues such as inflation, environmental pollution, traffic problems and housing shortages are at the forefront. Read more

• ADAC TAKES OVER GALERIA TRAVEL AGENCIES: As of October 1, 2024, the travel agencies of the Galeria Karstadt Kaufhof chain will be taken over by ADAC Hessen-Thüringen Urlaubsreisen. ADAC Hessen-Thüringen Urlaubsreisen is a subsidiary of ADAC Hessen-Thüringen e.V. The parties have agreed not to disclose the purchase price. Read more

• PRICE INCREASE FOR FLIGHTS AND PACKAGE TOURS SLOWS DOWN: The rise in prices for international flights and package tours slowed in the first half of 2024 compared to the previous year, according to the Federal Statistical Office. Prices for international flight tickets fell by an average of 3.1%, while economy tickets for intra-European flights rose by 2.7%. Prices for flights to Central America, Asia, Australia, North and South America fell particularly sharply. Package tours became more expensive compared to the previous year, but less so than in 2023. On average, they were 5.2% more expensive, with trips to Turkey, the Canary Islands, the Balearic Islands and Greece recording the highest price increases. Travel to Egypt, on the other hand, became cheaper. Prices for domestic flight tickets remained stable, while prices for international flight tickets rose by 20.9% overall compared to pre-corona levels. This development reflects the diverse effects of factors such as the economic situation, demand trends and regional characteristics that influence the aviation and tourism market. Read more

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• MARABU SIGNIFICANTLY EXPANDS ITS FLIGHT OFFERING: The vacation airline Marabu, sister company of Condor, is planning a significant expansion after a rough start last year. In the coming winter flight schedule, three new bases will be opened in Germany and the flight offering will be greatly expanded. In summer 2025, Marabu plans to fly to 18 vacation destinations around the Mediterranean from a total of 18 departure airports in Germany and Basel-Mulhouse-Freiburg, with a focus on Greece and Spain, but also Portugal, Italy, Cyprus, Egypt and Turkey. Munich and Hamburg will be discontinued as bases, while new bases will be established in Cologne/Bonn, Stuttgart, Nuremberg and Leipzig/Halle. Marabu will double its own aircraft capacity from the current four Airbus A320 Neo aircraft to eight by spring 2025 in order to cope with the expanded flight program. Despite initial difficulties, the company sees itself as an established player in the European vacation flight market with improved punctuality and customer satisfaction ratings and the transportation of more than one million passengers since its launch in spring 2023. Read more

• EUROPE RECORDS SIGNIFICANTLY MORE FLIGHT CANCELLATIONS IN JUNE: The number of flight cancellations in Europe rose by 46% in June compared to the previous month, according to the flight data analysis company Cirium. A total of 8,145 flights were canceled, compared to 5,584 in May. Icelandair was named the most punctual airline with a rate of 84%, followed by Iberia Express with just under 83% and Iberia with around 78%. SAS and Finnair were also among the top airlines in Europe with punctuality rates of 77 and 76% respectively. Cirium defines a flight as punctual if it arrives within 15 minutes of the scheduled departure time. Cirium's data analysts cite several reasons for the increase in flight cancellations, including the strike by French air traffic control at the end of May, which led to numerous cancellations and detour throughout Europe. Staff shortages, particularly among pilots and cabin crew, also contributed to airlines having difficulties filling their flights completely. Read more

‍

DESTINATION NEWS

• SPAIN: Current protests against mass tourism in Spain have attracted attention, but tourism experts emphasize that they do not mean a general disruption for guests. Protests in cities such as Palma and Barcelona are directed against the negative effects of mass tourism, not against tourism itself. Spain's government is planning measures such as a vacation rental register. Despite concerns, travel agencies have not yet seen a significant drop in visitor numbers. However, experts warn of possible negative effects on the tourism industry if protests increase. Read more

• GREECE: On July 11, the Greek parliament passed a new tourism law aimed at improving tourism infrastructure and training. The key points of the law are new regulations to promote sustainable tourism development, a modern framework for special forms of tourism such as glamping and measures to protect and promote the profession of tourist guide. Despite the approval of Nea Dimokratia, the law was rejected by the opposition parties. Greek Tourism Minister Olga Kefalogianni emphasized the importance of these reforms for the high-quality development of the tourism sector in Greece. Read more

• VENICE: Venice is planning to maintain and modify admission prices for day tourists. From next year, visitors will have to pay five euros on less busy weekends and up to ten euros on “critical days” in the high season. The previous trial with a fee of five euros brought in more than two million euros, but was unable to effectively curb mass tourism. The city is currently examining the data collected before making a final decision. Read more

• SEOUL: The South Korean capital Seoul is taking drastic measures to protect the Hanok district of Bukchon from the effects of mass tourism. The district, known for its traditional Korean Hanok houses, is suffering from increasing noise, garbage and restrictions on privacy for local residents. From October, access for tourists will be restricted to certain times between 10 am and 5 pm. Outside of these times, access is prohibited. In addition, color-coded zones will be introduced to control crowds and impose fines for violations. Tourist bus stops will be removed to reduce traffic and make the area more pedestrian-friendly. Read more

• HUNGARY:  Erdei Bálint from the Hungarian National Tourism Agency explains why a trip to Hungary is worthwhile at any time of year. Hungary has big plans for growth as a tourist destination. By 2030, the number of overnight stays is set to rise from the current 41 million to 50 million, while the number of guests is set to increase by four million to 20 million. Erdei Bálint is in charge of the tourism strategy and reveals here what his country is planning. Read more

• IRELAND: A new e-learning course on Expiprofi.de offers comprehensive training on Ireland's green treasures such as the Brú na Bóinne World Heritage Site and Ireland's highest mountain, Carrauntoohil. The current course deepens knowledge about Ireland's Unesco highlights, cultural heritage and national and geoparks. A “bucket list” and a quiz help to consolidate knowledge and discover alternatives to well-known sights. Further courses will follow and provide information via social media and newsletters. After completing all five courses, participants receive a certificate as an Ireland expert. The courses are available free of charge for registered users at expiprofi.de/irland. Read more

• SOUTHEAST ASIA: How Southeast Asian countries are courting new tourists: Several Southeast Asian countries are increasingly competing for tourists. Although the region had 1.3 billion visitors last year, this is only 88% of the pre-pandemic level. The strategies of the individual countries are different: Laos and Cambodia are promoting new rail and air connections, Thailand is focusing on extended visas and benefiting from the 2022 marijuana liberalization, while Bali is attracting digital nomads. Read more

• JAPAN: Japan is experiencing a boom in tourism due to the weak yen, but is having to cancel numerous flights as several airports are reporting fuel shortages. The reduction in refinery capacities due to the pandemic and the lack of transport personnel are leading to bottlenecks. At the end of June, almost 60 flights to Tokyo-Narita were canceled. Flights to the ski resorts of Hokkaido are also affected. Toshihito Kumagai emphasizes the competitive pressure on Narita. Shunichi Kito calls on the airlines to announce their plans a year in advance. In the short term, kerosene production and imports, possibly from South Korea, are to be increased. Narita is planning to import kerosene directly from South Korea for the first time. Read more

‍