People in Germany have so far not let the economic downturn or strikes spoil their mood to travel. The industry is presenting some record figures at the start of the ITB.
Business is booming again with the most beautiful weeks of the year. People in Germany are in the mood to travel despite the economic downturn, inflation and waves of strikes at Deutsche Bahn and Lufthansa.
“People in Germany’s hunger for travel is stronger than ever and continues to grow,” said the President of the German Travel Association (DRV), Norbert Fiebig, at the start of the world’s largest travel trade fair ITB Berlin (March 5th to 7th). Booking sales for the important summer season are currently well above the pre-Corona record in 2019.
According to surveys, more people want to travel this year than last year. According to the DRV, in a recent GfK survey, 79 percent (plus 2 percentage points) said they were planning a vacation trip. In addition, 25 percent want to spend more or significantly more on it than in 2023. According to the research community for vacation and travel (FUR), savings are more likely to be made in other areas. “For most people, a long trip is part of life,” said the study director of the FUR travel analysis Ulf Sonntag recently.
Record summer 2019 will be exceeded
As of the end of January, according to the DRV, 24 percent more people in Germany had booked an organized trip for this summer than a year before. Sales of package tours or modular trips, whose individual elements such as hotels and flights can be put together individually, were 30 percent higher than the previous year. Sales have so far exceeded the record summer of 2019 before the corona pandemic by 11 percent, also due to increased prices. The number of guests, however, is still 17 percent behind 2019.
With a view to the planned strikes at Deutsche Bahn and Lufthansa during the ITB week, Fiebig said: “That is not a good image that is being conveyed to the world from Germany.” The strikes damaged the entire economy and trust in Germany as a business location.
Significant sales growth expected
DRV President Fiebig expects “significant” sales growth for the year as a whole, even if it is unlikely to continue at the previous pace. At the same time, the gap in the number of customers will be smaller compared to the pre-Corona year of 2019.
“The longing for sun and beach is currently very great again,” said THE Central Europe tourism boss Ingo Burmester. According to his information (as of mid-February), the number of guests from Germany for the summer is 33 percent higher than in the same period last year. Booking revenue increased by 47 percent. “So we see demand continuing to increase; travel remains a priority in 2024.”
Industry leader Tui also recently reported increased demand despite the weakening economy in Germany. “Holiday trips are still a high priority for our customers. This is more stable than we would have thought,” said Tui CFO Mathias Kiep. The organizer FTI Group, which was dependent on government aid during the Corona crisis, is back on track for growth thanks to increased demand.
Criticism of the planned increase in ticket tax
According to the travel association, the most popular travel destinations for the summer are currently Turkey, followed by Spain and Greece. However, travel is unlikely to be cheaper overall this year. The airport association ADV criticized the planned increase in ticket taxes for air traffic. From 2019 to 2024 alone, the state-induced burdens on Germany as an airport location increased by more than 50 percent. “This is a fatal signal for travelers and tourism companies,” said ADV Managing Director Ralph Beisel.
Travel spending increased by almost 10 billion
In the last travel year 2022/23, which ended on October 31st, the industry recovered from the slump caused by the corona pandemic. “The Germans have spent almost 10 billion euros more on traveling than before the pandemic,” reported the DRV president.
German citizens spent 79 billion euros in 2022/23 on trips with at least one overnight stay that were booked before departure. Compared to the record value of 69.5 billion euros in the pre-Corona year 2018/19, spending increased by 14 percent, also because prices rose.
According to the information, sales of package and modular trips increased by 31 percent to 37.3 billion euros in 2022/23 compared to the previous travel year. International and long-distance trips as well as cruises were also in demand following the significant declines during the pandemic.
International tourism on course for recovery
According to the United Nations World Tourism Organization (UNWTO), international tourism is expected to return to pre-pandemic levels this year. Initial estimates suggested growth of two percent above 2019 levels. The expectations for Europe are positive, among other things because the 2024 Summer Olympics will take place in France in July and August.
Last year, global tourism reached 88 percent of its pre-Corona level, with an estimated 1.3 billion international guest arrivals. According to the information, there were strong increases in Europe and the Middle East, for example in Qatar and Saudi Arabia.
Source: Stern
