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Karin, Isabell, and the #famousteam
CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION
- DRV forecast for the travel year 2024 is positive: The German Travel Association (DRV) is forecasting a positive travel year for 2024 with expected travel expenditure of 80 billion euros, an increase of six percent compared to the previous year. Despite economic uncertainties, Germans enthusiasm for traveling remains high. This means that vacations are a high priority, while other consumer spending is being put on hold. Vacation destinations in the eastern Mediterranean, cruises and long-haul trips are particularly popular. For the 2024/25 winter season, the DRV expects an increase in turnover of four percent to 26 billion euros and a slight increase in travelers of one percent. Read more
- The future of luxury travel: The future of luxury travel will be defined by millennials, who value high quality and special experiences and are willing to pay a lot for them. While the 50+ generation is becoming less important, more and more luxury travel brands such as Sea Cloud Cruises are focusing on products that specifically target younger travelers. The Consumer Generation Study 2024 shows that millennials in the luxury segment are primarily looking for unforgettable experiences such as glamping or Antarctic cruises and use digital services and AI. Despite rising prices, they are willing to pay for uncompromising quality. Luxury travel is increasingly being booked via digital channels, although personal advice remains important. Package tours and luxury cruises are also gaining in popularity. Sustainability is playing a growing role, with many travelers willing to pay higher prices for more environmentally friendly options. Providers should therefore invest more in digitalization and personalized offers to meet the hybrid needs of luxury travelers. Read more
- "We are nowhere near the peak of overtourism": Beatrix Morath, management consultant, talks about the problems of overtourism, which leads to mass protests around the world, such as in Barcelona and Venice, and affects the quality of life of locals. Morath emphasizes that all travellers are part of the problem. Major contributors such as Airbnb, cruises, low-cost airlines and social media all contribute to overtourism in different ways. Airbnb makes living space scarce, cruise ships flood cities, low-cost airlines increase the number of travelers and Instagram creates overcrowded hotspots. Solutions include visitor limits and regulation of the tourism industry. Package tours, promoting the low season and lesser-known destinations could also help. In Switzerland, there are only isolated cases of overtourism. Morath sees climate change as a real threat to resource conflicts. Travelers should travel moderately, support local providers and visit sights outside of peak times. Read more
- Why music is so important in tourism: ?In the tourism sector, music is far more than just background noise; it is an essential element in shaping the guest experience. The managing directors of Radio Park explain why customized music programs are essential in the hotel and cruise ship industry. Unlike general streaming services such as Spotify, which only offer limited playlists, the industry requires a comprehensive repertoire of up to several thousand songs that is regularly adapted. Music not only creates a pleasant atmosphere, but also supports the branding and emotional appeal of guests. It helps to minimize disturbances caused by unwanted noise and contributes to a company's identity by being tailored to the respective brand and target group. For hotels, restaurants and cruise ships, bespoke music also offers an automation solution that reduces daily effort while increasing guest satisfaction. Read more
- The top 18 most crowded tourist destinations: According to an analysis by Holidu.ch, which examines the number of tourists in relation to the population, Dubrovnik, Rhodes and Venice are among the most crowded cities in the world. These cities have particularly high numbers of tourists per inhabitant. The ranking also reveals some surprising cities such as Reykjavik and Porto, which also have high tourist numbers per capita. In addition to the urban hotspots, there are also crowded beaches in Europe. According to Tripadvisor, these include Cala Agulla and Cala Gran in Mallorca, Llevant Beach on the Costa Dorada, and Spiaggia La Cinta in Sardinia. Beaches such as Koukounaries on Skiathos and the Blue Lagoon in Malta are also known for their high visitor frequency. Read more
- Super-rich women boost wellness tourism: The rising wellness tourism industry is increasingly influenced by the growing number of female super-rich. According to Julius Baer, a renowned Swiss wealth manager, there were 43,457 female ultra-high-net-worth individuals (UHNWI) worldwide in 2023, and their numbers are growing faster than their male counterparts. This trend is driving interest in luxury wellness vacations, which are often specifically targeted at women. The value of the wellness industry rose from $650.7 billion in 2022 to $867.9 billion in 2023 and could exceed the one trillion mark by the end of 2024, with an increase to $1.4 trillion by 2027. Exclusive spa and detox retreats are particularly in demand in countries such as Thailand, Indonesia and India, where luxury brands such as Four Seasons and Banyan Tree provide special offers. Wealth Insight economist Roselyn Lekdee emphasizes that wealthy women are increasingly demanding customized and high-quality services. Read more
CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE
- Ticket prices for long-haul flights fall significantly: Following the peak of the pandemic, fares have been reduced to a level not seen for five years. For example, flights to Bangkok, Rio de Janeiro or Sydney currently cost significantly less. While prices in 2022 were still over CHF 1,500 for Asia and CHF 3,000 for Australia, they have been significantly reduced in 2023. Current prices from Zurich show big savings: Bangkok for 558 francs, Bali for 794 francs and Sydney for 1239 francs. Even in the high season over Christmas and New Year, prices remain surprisingly low. Swiss has also reduced its prices, but cannot quite keep up with the cheap offers of the connecting airlines. A non-stop flight to Bangkok costs CHF 808 with Swiss, while the fare for connecting flights is CHF 558. This price situation could still change in the coming weeks. Read more
- Frankfurt Airport lowers its traffic forecast: The Frankfurt airport operator Fraport is lowering its traffic forecast for this year. Due to delivery problems at Boeing and production problems at Airbus, which affect its main customer Lufthansa, Fraport now expects to achieve only the lower half of the originally targeted 61 to 65 million passengers. Despite these challenges, Fraport recorded a better result than expected in the second quarter of 2023: Revenue increased by almost 11% to 1.15 billion euros, while earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 355 million euros. Net profit amounted to 134 million euros, compared to 102 million euros in the previous year. The management, headed by Stefan Schulte, is sticking to its forecast for operating profit, despite the ongoing problems at Boeing and Airbus, which are leading to delays in aircraft deliveries. Read more
- Swiss earns 22 percent less: In the first half of 2024, Swiss recorded a 22 percent decline in its operating result to CHF 264 million, compared to CHF 338 million in the same period of the previous year. Chief Financial Officer Dennis Weber, who took office on May 1, 2024, explains that the intensification of competition and rising costs, including higher wages and fees, have weighed on the result. Despite a 12.3% increase in passenger numbers to 8.5 million and a 13% increase in flights, the average passenger load factor is 81.9%, 1.4 percentage points below the previous year's figure. Air fares were reduced by an average of four percent in the first half of the year. Swiss's punctuality fell to 66% in June, partly due to weather conditions and airspace bottlenecks. CEO ad interim Heike Birlenbach believes the course has been set for a good annual result, with investments in the future and a focus on customer service and stable flight operations. CFO Weber remains optimistic for the second half of the year, despite the challenges posed by geopolitical developments and cost inflation. Read more
DESTINATION NEWS
- VENICE: Venice is taking new measures to combat the effects of mass tourism. In addition to the introduction of an entrance fee, the size of tour groups is now limited to a maximum of 25 people. In addition, the use of loudspeakers by tour guides is now prohibited. The city suffers from the crowds, which cause traffic jams, particularly in the old town with St. Mark's Square, the Rialto Bridge and the canals. The new regulations are intended to help give residents more peace and quiet and improve pedestrian traffic. Penalties of between 25 and 500 euros will be imposed for violations. The measures, which were originally due to start in June, will now come into force at the beginning of August and apply to the city center as well as the islands of Murano, Burano and Torcello. Read more
- Venice is planning to charge an entrance fee of up to ten euros for day visitors from 2025. The test month, in which a five euro fee was charged, generated more than two million euros for the city. Despite the additional income, mass tourism could not be significantly reduced. For the coming years, a basic tariff will be introduced on normal days and a maximum tariff on particularly busy days. The main aim of the measure is to regulate visitor numbers and reduce the burden on the city. According to critics, the test has not had much of a deterrent effect, which was not expected. Some exceptions, such as for locals and hotel guests, remain in place. The exact amount of the entrance fee and the exact dates for the fee regulation are still pending. Read more
- TURKEY: Turkey recorded a significant increase in international tourism in the first half of 2024. The number of visitors rose by 13.9% to 26.1 million and tourism revenue increased by 9.3% to 23.7 billion US dollars. On average, tourists spent 98 US dollars a day. The traditional source markets of Russia, Germany and the UK performed particularly well. Russia recorded 2.7 million visitors (up 3%), Germany over 2.5 million (up 9%) and the UK almost 1.8 million (up 19%). More tourists also came from China and Japan: the number of Chinese visitors rose by 111% to 187,000, and 56,000 people traveled from Japan, an increase of 96%. Turkey's historical and cultural heritage, especially museums and historical sites, attracted almost 14 million visitors, an increase of 12%. The most visited sites include Ephesus, the Mevlana Museum in Konya, Hierapolis and Pamukkale, as well as the G?reme and Zelve regions in Cappadocia. Turkish Tourism Minister Mehmet Nuri Ersoy is confident that Turkey will reach its targets of 60 million tourists and 60 billion US dollars in revenue. Read more
- Turkish tourism expert Fehmi K?fteo?lu asks whether Turkey should target tourists from EU countries who have been put off by anti-tourism protests. K?fteo?lu emphasizes that these protests are often directed against the negative consequences of mass tourism on infrastructure and quality of life, not against tourism itself. He points out that countries such as Spain, Italy and Greece have increased their tourism revenues, while Turkey is lagging behind in terms of revenue growth, even though visitor numbers are increasing. K?fteo?lu suggests that Turkey should not only focus on turning off tourists, but should target luxury travelers who are willing to spend high amounts on exclusive experiences. In his opinion, Turkey should position itself as a high-quality vacation destination in order to generate higher revenues, rather than simply increasing the amount of tourists. Read more
- CARIBBEAN: Caribbean tour operators are calling for improvements to the flight offer, especially to Puerto Plata in the Dominican Republic. They would like to see additional connections from German airports and the early announcement of new flight connections. Problems such as long transfer times and the lack of flexible tour operator fares are also criticized. Tobias Bening, Manager at Ikarus Reisen, criticizes the tendency of airlines to concentrate on corporate business and allocate quotas, which makes price calculation more difficult. Read more
- CUBA: Tourism in Cuba continues to face considerable challenges, which are exacerbated by the general crisis in the country. Since the coronavirus pandemic, the number of tourists has fallen drastically: in 2023, only 2.4 million people visited the island, compared to 4.2 million before the pandemic. The target of 3.2 million visitors for 2024 also seems unrealistic. The decline is particularly dramatic for German tourists: the number fell from 243,172 in 2017 to just 58,715 in 2022. Christoph Blaha, who works for the German specialist tour operator Aventoura in Cuba, describes the situation as challenging, but is optimistic about the future. Blaha has lived on the island for around 15 years and has seen a positive response to Aventoura's multi-activity tours and round trips despite the difficult situation. The tourism sector is struggling with problems such as power cuts, fuel shortages and food supply bottlenecks. Nevertheless, Cuba remains a safe and fascinating destination. The private restaurant sector is showing positive growth and prices for food and drink are reasonable. Read more
