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03.01.2020 – 16:18

Global Communication Experts

GCE news mail: German market news week 1

German market news week 1

Dear all,

Happy New Year - may 2020 be a year of great happiness and success for you!

Please find hereby the weekly market news:

Market News:

- CEOs expect business travel to increase in 2020: As reported by Travel 
  Inside, Switzerland's leading travel trade magazine, the climate debate has an
  impact on business travel: Two-thirds of companies have already adapted their 
  travel policies to take account of this. The number of business trips will 
  nevertheless increase in 2020. At least 61 percent of the CEOs and top 
  managers surveyed by Airplus International are convinced of this. One third 
  expect the number of business trips to remain unchanged (36 percent), while 
  only 3 percent forecast a decline. This is the result of a recent survey of 
  the business travel management provider among more than 400 board members and 
  managing directors from Germany, USA, China, Italy and France. The most 
  important reason for a further increase is cited by company managers as 
  general sales growth or business expansion. Among those expecting more 
  business travel, 94 percent cited this as one reason. 83 percent see an 
  increasing importance of personal exchanges with customers, and the same 
  number expect expansion into foreign markets. Despite the expected increase, 
  climate protection is playing an increasingly important role in business 
  travel. Without measures in this area, the number of trips and flights would 
  probably be even higher: one third of companies have already limited the 
  number of trips for this reason, and another 38 percent plan to do so. Four 
  out of ten have replaced flights with trains or other less CO2-emitting means 
  of transport, and a further 41 percent are planning to do so. Nevertheless, 
  air travel remains important for many journeys: 81 percent said they could not
  do without air travel. 

Aviation News:

- About 200 flights are cancelled due to UFO strike: Due to the three-day 
  strike by the cabin union UFO at the Lufthansa subsidiary Germanwings, a total
  of around 200 flights were cancelled - more than 70 of them on New Year's Day 
  alone. A spokeswoman of the Lufthansa subsidiary Eurowings told this the 
  German Press Agency late Wednesday evening. Germanwings is flying for 
  Eurowings with about 30 aircraft and about 1400 employees, but is to be merged
  with their flight operations. In total, more than 85 percent of the 1,200 
  flights planned from Monday to Wednesday could have been carried out, the 
  spokeswoman said. All passengers affected by cancellations had been 
  transported to their destinations by other means. The cabin union UFO had 
  announced on New Year's Day that it would end the strike - after having 
  threatened to extend it in the meantime. The official reason for the strike 
  are regulations on part-time work for cabin workers, which according to UFO 
  are unfulfilled. Lufthansa and UFO have been at loggerheads for some time. 
  This is not only about collective bargaining issues, but also about the 
  recognition of UFO as a trade union. In the conflict there had been a warning 
  strike at four Lufthansa subsidiaries as well as a two-day strike at the core 
  company Lufthansa. About 1,500 flights with about 200,000 affected passengers 
  had been cancelled in November. 
- Berlin Airports achieve passenger record: According to fvw, in the year prior
  to the BER opening, the Berlin airports Tegel and Schoenefeld set a new 
  passenger record: Around 35.5 million passengers have departed from the two 
  airports in the past twelve months. This was announced by Airport CEO 
  Engelbert Lütke Daldrup to the German Press Agency. Although the two airports 
  got long in the tooth, the number of passengers in the capital city has 
  increased by another 2.2 percent. This is almost twice as high as in 2006, the
  year in which construction of the new Capital Airport BER began. After years 
  of delays, it is scheduled to go into operation this autumn. 
- Condor returns to Berlin-Schönefeld: In summer, Condor starts from the 
  capital and operates flights mainly to the Canary Islands and the Greek 
  Islands, fvw reports. For this purpose, a machine is stationed in 
  Berlin-Schönefeld. Condor had stopped flights from Berlin-Schoenefeld in 2018.
  The holiday airline will return to the capital with an Airbus 320 stationed at
  the airport. "The great commitment of the tour operators makes it easier for 
  them to make the economic decision to offer connections to the popular 
  destinations of the Berlin and Brandenburg residents. The island of Samos will
  even make Condor the only airline from Berlin to offer flights to the island",
  says Ralf Teckentrup, Chairman of the Condor Management Board. With the return
  to Berlin, Condor will be represented at all major airports. In the summer 
  flight schedule, Gran Canaria, Tenerife and Fuerteventura will be served twice
  a week from Berlin, while in Greece, Heraklion (Crete) will be served twice a 
  week and Rhodes and Samos once a week each. There are also flights to Olbia 
  (Italy) on Wednesdays and Sundays. 

Cruise News:

- The cruise industry sees itself as a pioneer: With the turn of the year, 
  shipping will become less environmentally damaging, fvw reports. The fuel for 
  marine diesel engines may only contain 0.5 percent sulphur instead of the 
  previous 3.5 percent, according to the regulations of the international 
  shipping organisation IMO, which are now coming into force. The cruise 
  industry is also affected by the new regulations. However, many shipping 
  companies such as Aida Cruises, TUI Cruises or Hurtigruten emphasise that they
  have been complying with the stricter regulations for a long time and that 
  cruise shipping is considered a pioneer and innovation driver in this sector. 
  Large ships require 100 to 200 tons of fuel per day, depending on size and 
  cargo. Bunker costs are a significant part of operating costs. The new fuel is
  about 50 percent more expensive than the old one. The container liner shipping
  company Hapag-Lloyd expects additional costs of around one billion dollars a 
  year; the world's largest shipping group Maersk expects two billion. According
  to an analysis by the Landesbank Baden-Württemberg, experts expect additional 
  costs of 60 billion dollars in total. 
- Forsa survey - What Germans appreciate about cruises: According to touristik 
  aktuell, the route remains the most important booking criterion for German 
  cruise customers. This is the result of a Forsa survey on behalf of the cruise
  association Clia. According to the survey, 79 percent of the approximately 500
  respondents estimate that they can discover a variety of destinations in a 
  relatively short time. 76 percent rate the comfort of a cruise higher than a 
  holiday on land, and 73 percent emphasize the leisure and cultural facilities 
  on board. "Cruises are a great way to make a very comfortable round trip", 
  says Helge Grammerstorf, National Director of Clia Germany. "There is no other
  form of travel that allows holidaymakers to make the most of the time between 
  two destinations as well as on a cruise ship." The catering offer on board is 
  particularly important to 82 percent of those surveyed. In second place are 
  the pool and outdoor areas (53 percent), in third and fourth place 
  entertainment facilities and the show programme (41 percent each). According 
  to the Clia Annual Report, the most popular cruising area in 2019 was Northern
  Europe (27 percent), followed by Central and Western Europe (23 percent) and 
  the Canary Islands (nine percent). The dream trip par excellence for two out 
  of three respondents would be a trip around the world. Just under half named 
  the Caribbean including Bermuda and the Bahamas as their dream destination. 
  According to the survey, 99 percent of the participants would book a cruise 
  again - 81 percent even plan to do so in 2020. 

Best regards and enjoy your weekend,

your GCE Team

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