Berlin On Wednesday, the Tui travel group will present its figures for the financial year that ended in September and venture an outlook. There is much to suggest that this will be positive. Because it’s obviously going well in tourism – despite the sharp increase in the cost of living. “Business has picked up quite a bit since mid-November,” said Germany boss Stefan Baumert on Monday in Berlin: “People want to go on vacation, they’re more likely to save elsewhere.”
That should be good news for investors. Tui had to be rescued with state aid during the pandemic. But the group is slowly getting back on track. By the time 2022 was drawing to a close, business was already going much better again. Concerns that this could only be a short-term catch-up effect have not yet been confirmed.
“The need to catch up continues,” said Baumert. Another trend is also continuing: customers are spending more on their journey, and it is taking longer. You can see that in the trips this winter. Travel prices would rise in 2023, but not as much as inflation. According to Tui, the increased prices have not yet caused a slump in demand. “Every second booking that is currently coming in is for the coming summer,” said Baumert.
However, customers book at short notice. And they are looking for travel packages in which all services are covered. According to Baumert, the trend is towards fully comprehensive insurance for the budget: “All-inclusive is becoming a megatrend. Budget security is important to many customers.” In addition, such all-inclusive trips are cheaper than if the travel elements were booked individually.
At the same time, there are many customers looking for bargains and cheap offers. Tui has established the Suneo brand in this segment and is responding to growing demand. Suneo will get seven new hotels in the coming year.
This shows that the tourism industry should not rely on things going well in the long term. For example, many citizens do not receive their heating and energy bills until the beginning of the year. “Then there will be more clarity,” said Baumert.
The travel industry is still feeling the effects of the pandemic
The figures presented by the German Travel Association (DRV) in mid-October also make it clear that the travel industry is still feeling the effects of the pandemic. At that time, reservations for this winter were still 33 percent below the level of the last pre-Corona winter of 2018/19.
“By the final end of the season, we expect a minus of around ten percent compared to 2019 this holiday year,” said association president Norbert Fiebig in mid-October.