Berlin The sum sounds adventurous. A family of seven paid 260,000 euros for their vacation trip to the Galapagos Islands and Mexico – not including the flight. The trip was purchased from Tui’s travel agency in Berlin. “Something like this is of course not a mass product,” said Tui Germany boss Stefan Baumert on Tuesday evening at a presentation in Berlin. But it does happen – and stands for a trend.
Consumers treated themselves to something for their holidays – despite the rising costs everywhere. “We see strong growth in the luxury segment,” said Baumert. Tui runs this business under the Airtours brand. For example, exclusive accommodation in the middle of the rainforest in Bali is in demand. Or the luxury hotel in Greece, where the stock of wine in the minibar is refilled around the clock. “This also includes offers such as being able to drive a Tesla for a day,” said Baumert.
The pandemic, the most serious crisis in the travel industry to date, is over. The industry feels that. The Federal Statistical Office reported on Tuesday that tourism in Germany is almost back to pre-crisis levels. “This summer shows the importance of vacation,” said Baumert. Around half of the summer program has already been sold. And it is already clear that it will be a record in terms of sales.
There are two reasons for this. On the one hand, the number of customers for some holiday destinations is higher than before the crisis. On the other hand, more is spent on vacation. This in turn is not only due to longer and more luxurious trips. Prices have also gone up.
There are different statements in the industry about how much more expensive the holiday trip has become. No one really wants to have their cards looked at. But aggressive campaigns with large-scale last-minute prices are a thing of the past. Companies have learned to manage their capacities better. They no longer have to force their offer onto the market at competitive prices.
The travel portal Holidaycheck has calculated that travelers have to pay up to 50 percent more for a holiday in some regions such as Greece. On the other hand, the Federal Statistical Office reports that the best time of the year in southern European countries is cheaper than destinations at home.
Travel prices have increased significantly
Tui Germany boss Baumert does not want to be pinned down to a specific number either. On average, Tui prices have risen less than inflation, he said. “It has fallen again and was recently at six to seven percent.” But of course the vacation for a typical family of four is more expensive, after all, the industry also has higher costs, for example for energy or aviation fuel.
That’s why we don’t book less. At Tui there are even more repeaters in the systems than before the crisis. This refers to people who book another trip with the group within two years. “The rate has increased,” says Baumert.
Things are getting tight in popular holiday destinations, and beds are becoming scarce. This applies to some Greek islands, for example. On the other hand, there are still bargains in Turkey, said Baumert.
Despite the booking boom, the precise impact of inflation on vacation planning is difficult to gauge. On the one hand, the high cost of living does not keep many people from their vacation plans. The example of the USA shows this. At Tui, the country is currently the hit among long-distance trips. The trip there is very expensive. Local inflation in the USA is accompanied by unfavorable currency relations between the euro and the dollar.
On the other hand, Tui Germany boss Baumert sees evidence in the numbers that people are giving up their planned long-distance trip and instead prefer destinations such as Cape Verde. “The costs are lower there, sometimes even significantly.”
The manager reports that the family, who were willing to pay 260,000 euros for their vacation trip, really let it rip. Seven nights were spent in a luxurious ambience on the Galapagos Islands, including the private expedition ship. Then we went to the Mexican coast for five more nights.
Even if such trips are the absolute exception, the employees in the Tui travel agencies recognize a clear trend. The older wealthy people get, the stronger the urge to fulfill remaining dreams. More and more frequently, these people come to the Group’s sales outlets with their personal “bucket list” to work through it. The costs are secondary.