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06.12.2019 – 11:40

Global Communication Experts

GCE news mail: German market news week 49

German market news week 49

Dear all,

Please find hereby the weekly market news:

Market News

- Sales soar as Cook customers book new holidays: According to leading travel 
  trade magazine FVW, the 'Cook effect' continued in October as German customers
  of the insolvent company booked alternative summer and winter holidays with 
  other tour operators, thus boosting overall sales figures, the latest monthly 
  Travel Insights analysis showed. With hundreds of thousands of advance 
  bookings cancelled by Thomas Cook Germany following its insolvency in late 
  September, many customers played safe over the following month and booked 
  another holiday instead, either last-minute deals for the autumn half-term 
  school holidays in October, or for the coming winter season. As a result, 
  sales revenues for last-minute holidays in October (the final month of the 
  summer 2019 season) soared by a dramatic 33% compared to the same month last 
  year, albeit on low volumes, according to analysis of sales by 2,000 
  representative travel agencies, OTAs and tour operator websites by market 
  researchers Travel Data + Analytics (TDA). This last-minute surge left overall
  sales for the summer 2019 season up by 1%, and thus showing low growth after 
  months of fluctuating demand compared to the strong previous year. Despite the
  late re-bookings by Cook customers, travel agents ended the summer with a 1% 
  drop in revenues while online channels generated solid growth of 7% compared 
  to summer 2018. Overall, the 2018/19 tourism year closed with a low 2% 
  increase in sales revenues as a strong winter season partly compensated for 
  the weak summer season. Importantly, however, the TDA figures do not yet 
  include any cancelled Thomas Cook holidays due to reasons connected with 
  German insolvency law. Such consolidated figures, showing 'new' bookings minus
  cancelled 'old' bookings, would be significantly lower. 
- DER travel agencies increase their conversion rates: As part of their digital
  upgrade, DER travel agencies implemented an online appointment tool for 
  consumers. After one year, Managing Director Andreas Heimann reports a 
  positive feedback: The conversion rate is rising. After a consultation without
  a booking, customers receive targeted mailings, based on their customer 
  profile data. "The conversion rate has increased since the start of sending 
  the targeted mailings," he says. In order to find the ideal timing, customer 
  interests are obtained digitally or via the app and clustered. "That increases
  the hit rate," Heimann is sure. Another advantage of the new digital upgrade 
  is the possibility arrange appointments online. "This generates many new 
  customers," says Heimann. Moreover, the conversion rate, which is usually 
  around 25 percent, increases to more than 50 percent with fixed appointments. 
  Around 20 to 30 percent of all customers now make an appointment - and the 
  number is rising. 

Tour Operator News

- DER Touristik is officially taking over hotel brand Sentido: Subject to 
  antitrust approval, Sentido will be transferred to DER Touristik. As announced
  on 8 November 2019, the travel company will now take over the hotel brand of 
  the insolvent Thomas Cook Germany. DER Touristik would like to offer the 
  independent Sentido franchise partners a new, safe and entrepreneurially 
  successful home. Dr. Ingo Burmester, CEO of DER Touristik Central Europe, 
  says: "Sentido is a strong, high-profile hotel brand with the highest customer
  satisfaction. This makes it an ideal addition to our hotel portfolio. We will 
  use the strength of our tour operators and our very large distribution network
  to offer the Sentido houses nationwide. The goal is to stabilize and expand 
  the Sentido hotel portfolio." 
- Hoteliers want earlier payments from tour operators: The break-up of Thomas 
  Cook in Germany is nearing completion but hoteliers in major destinations who 
  lost heavily from the insolvency are demanding earlier payments from tour 
  operators in future, as reported by FVW. Many hotels in different destinations
  have not been paid for accommodation booked by Cook from July until September.
  The company, which declared insolvency at the end of September, generally did 
  not pay invoices until more than 60 days after receiving them. Therefore, 
  Turkish hoteliers are demanding earlier payments from tour operators in future
  as a consequence of their heavy debts caused by the Cook insolvency. 

Aviation News

- Condor offers more long-haul flights in 2020: Condor announced the 2020 
  summer flight schedule this week and is topping up its connections: The 
  leisure airline will be flying non-stop from Frankfurt to Edmonton in Canada 
  for the first time as of June 2020. In addition, long-haul destinations from 
  Munich will be on the flight schedule again in summer 2020, with a Boeing 767 
  stationed in Munich as of May 2020: Condor flies from the Bavarian state 
  capital to Cancun (Mexico), to Halifax (Canada), to Punta Cana (Dominican 
  Republic) and to Seattle (USA). As of this week, flights from Frankfurt to New
  Orleans (USA), Barbados and Tobago in the Caribbean can also be booked from 
  Frankfurt. "With the additional long-haul flights next summer, we are ideally 
  expanding our existing summer flight schedule 2020 - not only with the new 
  destination Edmonton in Canada from Frankfurt, but also with the non-stop 
  connections from Munich," says Ralf Teckentrup, CEO of Condor. "We are thus 
  offering our guests in southern Germany an even greater selection of direct 
  connections to their holidays and are strengthening our presence in Munich 
  with a stationed long-haul aircraft." 
- Ryanair is closing its base in Nuremberg: The delivery problems for the 
  Boeing 737 Max series, which is still grounded, have now worsened: Ryanair, 
  Europe's largest low-cost airline is now expecting only a maximum of ten Max 
  planes for the 2020 summer season - the plan was actually for around 60. Due 
  to these developments, there are further cuts in the route network of Ryanair 
  to and from Germany. The low-cost airline will close its base in Nuremberg 
  next summer, according to the airport. It is expected that two thirds of the 
  20 planned routes will be cancelled. Ryanair customers who have already booked
  tickets for flights from April 2020 onwards will be contacted by the airline.  

Cruise News

- Cruises continue to boom: For the first half of 2019, CLIA Germany reports 
  more than one million German passengers who went on a cruise, an increase of 
  17 percent in comparison to the same period in the previous year. All age 
  groups recorded good double-digit growth. For the entire year 2019, the 
  association expects a total of 2.5 million passengers. Most travelers 
  preferred European destinations for their cruise. One quarter of all 
  passengers went on a cruise to the Mediterranean Sea as the most popular 
  tourist destination. The Canary Islands (17.7%) and Northern Europe (15%) were
  equally popular. Cruises in Africa, the Middle East and in Asia also recorded 
  growth compared to the same period of the previous year, however only in the 
  single-digit range. 

Best regards and enjoy your weekend,

your GCE Team

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