Inflation is changing the travel industry
“Comprehensive all-inclusive offer becomes more attractive”
03/12/2023 5:07 p.m
The Germans’ desire to travel is unbroken even after the pandemic. As if people were waiting for the starting signal, the number of holidaymakers skyrocketed with the end of the Corona measures. According to a TUI survey, 64 percent are planning to travel this year or have already booked a holiday. But inflation and high energy prices do not stop at holiday regions either, and tour operators are raising prices. Markus Heller advises the travel industry and collects data on holiday trends worldwide with his Nuremberg company Travel Data + Analytics GmbH (TDA).
In view of the high inflation, can the middle-class family still afford the beach vacation at all?
Markus Heller: Yes and no. We have observed that, overall, Germans spend almost as much money on travel as they did before the pandemic. However, it can be seen that part of the population is just waiting and has not yet booked or is partially withdrawing the claims. So that the vacation remains affordable, the claims are scaled back. So most people are still vacationing, but paying more attention to the cost. Customers who are particularly price-sensitive shift their bookings. Those who used to vacation in the upper middle class segment are now more likely to book in the lower middle class. In contrast, no major changes can be observed in the luxury segment.
In which areas is summer vacation particularly expensive?
Markus Heller is the managing partner of Dr. Fried & Partner GmbH in Munich and advises the travel industry on current trends. With his own company Travel Data + Analytics GmbH (TDA), he collects data on developments in the holiday industry worldwide.
The western Mediterranean has the highest expenditure per person per night. We are currently seeing the highest increases in spending for Egypt and Turkey. Around 10 to 15 percent more will have to be spent on holidays in the Mediterranean this summer than last year.
Why is that?
Flights, hotels and eating out – everything is becoming more expensive. This puts off the more price-conscious vacationers and makes regions like the Turkish Mediterranean coast easier to plan and more attractive with a comprehensive all-inclusive offer. But if it is supposed to be the Algarve, early booking discounts or last-minute offers are worthwhile.
Does that mean the beaches in Spain will be empty this year and Turkish coasts will be overcrowded?
It won’t be that drastic. Spain can also look forward to significantly more German holidaymakers than in the last two years. But the TDA figures show that the booking volume in this region is growing less rapidly than, for example, in the eastern Mediterranean.
how come
In Tunisia, Egypt or Turkey, the prices for vacationers have of course also risen. Despite this, a week at the beach in this region is still far cheaper than in Western Europe. This is also reflected in the booking figures: Turkey bookings have increased by 25 percent compared to pre-Corona times and Tunisia is celebrating its comeback as a popular holiday destination. So the beaches there are getting busier.
Turkey and Tunisia are known for the all inclusive hotels. Turkey’s Antalya on the Mediterranean is a package tour paradise. So does the package holiday, which is often declared dead, have a future after all?
Those declared dead live longer. For years, the travel industry has been singing a farewell to the concept of package holidays. But the number of bookings is constantly high – they are even increasing.
Doesn’t the success of the classic package tour contradict the growing demand for individuality?
Yes, the trend is towards individual travel. However, this does not contradict the many package bookings. There are two main reasons for this: Firstly, tour operators can adapt their offers to the individual needs of their customers better and better. And secondly, tour operators offer a level of customer support that is lacking when you put together your own holiday on different websites. If something goes wrong on the trip, customers have a contact person and are insured through the tour operator. You appreciate that.
Is this security need a holdover from the pandemic? ´
When the pandemic broke out, holidaymakers around the world were lured back by tour operators. The need for security has increased in recent years and package deals can serve that quite well.
What will you look out for when booking a holiday this year?
It is definitely advisable to book early. The TDA figures show that travel is not becoming cheaper; we rather assume that capacities could become scarce.
Leon Koß spoke to Markus Heller
The interview first appeared on Capital.de