At this year’s DTPU annual conference on 18-19 March 2022 in Palma de Mallorca, Dr. Markus Heller, managing partner of Dr. Fried und Partner, reflected on the developments in tourism distribution. His remarks are based primarily on the real-world booking data collected by Travel Data + Analytics from Nuremberg for the German package tourism industry.
Two years of coronavirus leave their mark on tourism
Lockdowns, travel warnings and the classification of all travel destinations as high-risk areas have comprehensively restricted travel. Package tour operators had to cope with a drop in sales of around 70% in both years of the coronavirus pandemic. In addition, customers’ booking behaviour has changed permanently: short-term bookings have increased significantly, online sales have experienced a boost, differentiation through service and availability in customer perception has gained in importance and spending per booking has increased by a good 15%.
Currently, package tourism is at around 50% of pre-crisis levels
With the gradual removal of pandemic-related travel restrictions since the beginning of 2022, the first signs of recovery are emerging, although these are currently being dampened by Russia’s attack on Ukraine. For example, booking levels in the stationary sales channel in the current winter season were around 50% of pre-crisis levels. Online sales have been able to make somewhat better use of the resumption of travel activities, with 20% less revenue compared to 2019.
The development of average spending is currently positive. This has increased across all types of holiday and is around 15% per person per night above the pre-pandemic level. In addition to increasingly noticeable inflation and the corresponding rise in production costs, the flexibilisation of prices and a greater willingness to spend on safety and hygiene measures are important factors here.
Cautiously optimistic outlook for the new tourism year
The prospects for a recovery in demand for tourism are positive. However, booking behaviour will initially be characterised by uncertainty due to Covid and the war, as well as the resulting last-minute bookings. In addition, the coronavirus years, which have been characterised by working from home, have further increased customers’ affinity for online channels, meaning that the online channel will continue to gain in importance.
In light of the many negative customer experiences with rebooking and cancellations at the beginning of the pandemic, travel sales will be judged even more harshly in the future by whether they can offer customers reliable customer service and good accessibility. This is where travel agencies can play to their strengths and offer expertise and service via digital channels. In addition, there is a greater willingness to pay for flexibility and security when travelling, which offers very good service fee opportunities for committed and innovative travel agencies.