Alle Meldungen
Abonnieren Sie alle Meldungen von Global Communication Experts

13.12.2019 – 15:32

Global Communication Experts

GCE news mail: German market news week 50

German market news week 50

Dear all,

Please find hereby the weekly market news:

Market News

- Travel remains highly popular for Germans: At their annual conference this 
  week in Hamburg, the German Travel Association (DRV) presented the final 
  results of the tourism year 2018/19. The 2018/19 German tourism year ended 31.
  October, 2019 and had a sales growth of 2 percent, based on evaluations done 
  by the market research company Travel Data Analytics (TDA). The statistics 
  include: holiday packages or travel components, booked in stationary travel 
  agencies as well as through online portals and tour operator websites. "The 
  extraordinarily good results of the previous year were not only held level but
  there was also a slight increas - despite the numerous challenges", DRV 
  President Norbert Fiebig said while presenting the results.    In 2019, sales 
  in stationary travel agencies remained on the same high level as the previous 
  year, whereas online travel sales achieved a minor single-digit growth. 
  However, revenue shares for the higher priced segments are growing for 
  stationary travel agencies and are only of minor importance for the online 
  segment. This shows that personal consultations at stationary travel agencies 
  remains extremely valuable for fulfilling individual holiday wishes.    In 
  general, demand for long-haul trips was strong throughout the year, with a 4 
  percent increase in turnover. Cruises were also quite popular: a growth in 
  turnover of 9 percent was recorded for the entire 2018/19 tourism year and 8 
  percent for the summer season.   This year's summer season, was driven by 
  strong demand for holiday trips to Turkey. Revenues in sales (stationary and 
  online) went up by 24 percent compared to the previous year. Therefore, Turkey
  is - followed by Spain - the most booked destination of the summer months. 
  Greece fell to third place but remained a strong performer based on the 
  previous year. Egypt showed a high single-digit increase in sales and also 
  Tunisia recorded a growth during the summer. For Spain, the most popular 
  destination abroad, reported single-digit declines for the summer. Especially 
  the Canary Islands have to cope with greater losses than the Balearic Islands.
  Concerning the long distance destinations, the United States (+7%) and 
  Mexico (+10%) in particular had a great upward development in the summer 
  season. Asia and Australia/New Zealand combined, make up for about 38 percent 
  of the long-haul sales, with a minimal growth and below last year's numbers.  
  When choosing their winter destinations, Germans rely on popular holiday 
  regions that promise mild temperatures: Egypt is currently the most popular 
  winter destination followed by the Canary Islands. This means that the Canary 
  Islands are recovering after their steep sales decline during this past 
  summer. Turkey also enjoys growing popularity as a winter destination. With 
  respect to long-haul trips, the Maldives, South Africa and Cap Verde are in 
  high demand this winter.     
- German bookings for Mediterranean hotspots drop in November As reported by 
  FVW, Germany's leading travel trade magazine, German bookings for top holiday 
  destinations fell more than 7percent last month. Only Hurghada and 
  Fuerteventura evaded the general downward trend, according to the latest 
  monthly booking figures shown by Amadeus. The 7.2percent drop in package and 
  online bookings, through Amadeus systems, for the top ten destinations follows
  a 3.7percent drop in October. The figure is also similar to the overall 
  booking figures as of January, which were down by 7.4percent, the travel 
  reservations company said. In November, bookings for the top destination 
  Antalya dropped by 7.1percent after a 9percent fall the previous month. 
  However, the Turkish Riviera gateway airport remains the best-performing 
  destination of the year to date with a minor decrease of 1percent in bookings 
  between January and November. Second-placed Hurghada, which passed Palma due 
  to its role as a top winter sun destination, continued to grow with a 
  4.4percent rise last month, although it is down by 7.2percent over the first 
  11 months of this year. The much smaller Egyptian destination Marsa Alam 
  slumped last month, with a 40percent drop in bookings compared to the same 
  month last year. Last month, the interest in Spain weakened even more for the 
  German market, according to the Amadeus figures. There was a double-digit 
  decline for Palma (-16percent) for the second consecutive month and the 
  Majorcan capital was down by 11.1percent from January to November.    In the 
  Canaries, Fuerteventura (+5.6percent) remained on an upward path, indicating 
  better demand for winter sun holidays. But the other three main holiday 
  islands all generated lower bookings: Las Palmas (-12.3percent), Tenerife 
  South (-6.2percent) and Lanzarote (-7.3percent). In terms of booking channels,
  online sales are generally performing better than travel agents for the top 
  ten destinations, although both channels have lower sales than last year. 
  However, travel agents continue to generate higher prices than online portals 
  as they sell more full-priced holiday packages. The average price of a booking
  for a top ten destination through a German travel agency last month, was 
  EUR999 per person compared to EUR734 for an online booking. The overall 
  average was EUR870, according to the Amadeus figures.    

Tour Operator News

- German government forced to step in and promise compensation to holidaymakers
  hit by the insolvency of Thomas Cook German government will repay customers of
  Thomas Cook: The German government has been forced to step in and promise 
  compensation totalling EUR237 million to holidaymakers hit by the insolvency 
  of Thomas Cook Germany. Their insurance protection was far below the levels 
  required under EU law, as reported by FVW. The total financial damages from 
  the collapse of the country's second-largest tour operator at the end of 
  September are now estimated at EUR347 million, according to its insurance 
  company Zurich Gruppe. This includes EUR59.6 million paid out by the insurers 
  to bring back 140,000 Cook customers who were on holiday at the time of the 
  bankruptcy announcement. The remaining EUR287.4 million represents advance 
  payments for further 525,000 customers whose bookings were cancelled by the 
  insolvent company and who are legally entitled to full compensation under EU 
  law. But Thomas Cook Germany only had insolvency insurance for a maximum of 
  EUR110 million under the country's tour operator protection scheme, which has 
  been widely criticised as insufficient. Following the returnee costs, the 
  Zurich insurance company only has EUR50.4 million left for compensation 
  payments. This means there is a gap of EUR237 million between the total 
  damages and the insurance protection sum.   
- TUI delivers a strong operating performanceTUI Group reports an operating 
  result of 893 million Euros in the financial year of 2019 "At an operating 
  result of 893 million Euros, TUI Group delivered a successful financial year 
  2019. Even in a challenging year for the tourism sector, TUI delivered a 
  strong operating performance, a robust balance sheet and growth in its Hotels 
  & Resorts and Cruise core businesses," said CEO Fritz Joussen. Excluding the 
  impact of the 737 MAX grounding, TUI would have reported underlying EBITA of 
  1.186 billion Euros, matching the prior year's high level, the best result in 
  the history of the company. However, due to the grounding of the 737 MAX 
  aircraft ordered in March 2019, underlying EBITA comes to 893 million euros, 
  down 25.6 percent from the previous year (1.183 billion euros), in line with 
  expectations and the announcement made in the course of the financial year. 
  Holiday Experiences, the core business with hotels, cruises and destination 
  activities, again had a strong performance and an increase in underlying 
  EBITA, now accounting for 74 per cent of TUI's underlying result. The Markets 
  & Airlines business comprising the traditional tour operators, by contrast, 
  continued to face a very challenging market and competitive environment. Apart
  from the grounding of the 737 MAX, the challenges included a continued Brexit 
  uncertainty, airline overcapacities in Europe and changes in customers' 
  booking behaviour in the traditional tour operating business.    

Best regards and enjoy your weekend,

your GCE Team

Global Communication Experts GmbH
Hanauer Landstr. 184
60314 Frankfurt
p: +49 69 17 53 71-00
f: +49 69 17 53 71-011
GCE is member of Pangaeanetwork
Geschäftsführer: Dorothea Hohn, Ralf Engelhardt
Firmensitz: Frankfurt