Excerpts from issue No. 12, Vol. 9, December 2005

Joachim Hunold, managing partner of Air Berlin, has been appointed by the late Hinrich Bischoff, owner of Germania, to lead his airline. Bischoff had died November 11. Germania operates 44 aircraft which are mostly leased to airlines such as Air Berlin, dba, hlx and Lufthansa. Hunold intends to establish a management cooperation between Germania and Air Berlin.
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SunExpress, a joint venture of Condor/Thomas Cook and Turkish Airlines, will take up domestic flights in Turkey (Izmir-Antalya, -Adana, -Diyarbakir and -Trabzon).
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Market researcher Gesellschaft für Konsumforschung GfK in Nuremberg has established a tourism sales panel which will monitor actual booking data from 1200 German travel agencies on a monthly basis. Information available will concern prices, destinations, mode of transport, take-off and landing airports, time of booking and travel, length of travel and additional services such as insurance and rent-a-car. All data are inter-linked.
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While the volume of business travel will continue to grow, cost will increase less, the „AirPlus International Travel Management Study“ claims. Companies in nine European countries and the USA were researched. Only 8% predict a shrinking number of business trips, but 20% count on more savings. In Europe travel managers will negotiate more company rates and push process reengineering. Two of three companies already enjoy company rates with hotels, almost 60% with airlines. Four of five German corporate clients have secured company rates with car-rental suppliers, compared with less than 50% on a European basis. Savings achieved by company rates are quoted as 19% concerning hotels and 17% each concerning air travel and car-rental. The study was executed by Ipsos Loyalty during the summer of 2005.
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Prices for German hotel rooms will grow only up to 2% next year, according to the American Express Travel Forecast 2006. That is the lowest such growth rate world-wide.

Excerpts from issue No. 11, Vol. 9, November 2005

The German market for package tours in the touristic year 2004/2005 (October 31) grew by 5%, DRV President Klaus Laepple said at the German Travel Association’s congress in Dubai, October 14. Destinations with specially good numbers of German tourists were Turkey, Greece, Portugal, the Canary Islands, Majorca, Tunisia, Dubai, Kenya, South Africa, North America, Australia and New Zealand. Travel agencies reported a growth of 1%. The number of travel agency outlets in Germany dropped to 15,543 (minus 4.5%). The DRV expects a growth of 2 to 4% for the touristic year 2005/2006.
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The total expenditure for business travel in Germany dropped from 54.1 billion Euro in 2003 to 44.0 billion Euro in 2004, VDR The Business Travel Association of Germany says. According to the new “VDR Business Travel Report Germany 2005”, the number of trips remained stable, though: 146.4 million trips 2004 compared to 147.4 million in 2003. “Strict cost control has worked”, Michael Kirnberger, President of VDR, comments, “the causes for the drop in total costs are manifold: less intercontinental travel, shorter trips as well as cost-saving measures, for example reduction of travel category, more online bookings, use of low cost airlines and discount fares.”
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Lufthansa Systems and Bundesdruckerei have presented SecBoard, a biometric solution for more secure passenger identity control, which is integrated in the passenger handling process. SecBoard consists of two parts. At a registration station (enrollment), the passengers' fingerprints are recorded, digitized and stored on a smart card. This card only needs to be issued once and can then be used again for all future flights. The card also contains a photo of the passenger, personal information, and a serial number.
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Europäische Reiseversicherung AG now offers a new insurance for incoming tourists from most European countries. The package covers health, accidents and liability for up to 93 days.

Excerpts from issue No. 10, Vol. 9, October 2005

German travel suppliers use more and more alternative distribution channels. Latest example is leisure carrier LTU which offers 12,000 round trips Dusseldorf-New York for 189 Euro including taxes and fees not only online and in dedicated agencies but also in all Penny supermarkets nationwide. NYC & Company and department store chain Karstadt join forces in a similar effort by giving away one of 20,000 flight tickets to every customer who buys a New York City jacket for 199.95 Euro; American Airlines is said to be the major transportation partner. In May, German Railway Company Deutsche Bahn generated major publicity by selling tickets for 49.90 Euro in 2,600 Lidl discount markets. The contingent was sold out within one hour. A similar success was the promotion sale of 49.99 Euro tickets in July and August from low cost carrier dba through the shops of the Aldi Süd discount chain.
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The Top 50 hotels in Germany with the highest revenue finished 2004 with a net growth of only 3.7%. Their total net sales reached 4.99 billion Euro, according to publication „Der Hotelier“. 72% of the hotels reported growth (2003: 46%). The average room rate was 81.13 Euro, plus 2.2% compared to 2003. Head of the list is Accor Hotellerie Deutschland GmbH with total sales of 949.7 million Euro. Dorint AG was placed by the publishers number 2 with total sales of 381.4 million Euro, although this figure is also part of Accor’s consolidated results. Best Western Hotels Deutschland GmbH made rank 3 with 342.5 million Euro, Marriott Hotel Holding GmbH rank 4 with 333.8 million Euro, Steigenberger Hotel AG rank 5 with 325.4 million Euro, Maritim Hotelgesellschaft mbH rank 6 with 305.9 million Euro.
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Messe Berlin increases its focus on business travel. Next year, five days will be dedicated to travel management topics. Two of the ITB Business Travel Days 2006 will be organized as Global Business Travel Executive Days with the motto „Know your markets and perspectives“. All events will be translated into English. Business travel-relevant exhibition booths will be highlighted for the target group.
www.business-travel.itb-berlin.de
Excerpts from issue No. 9, Vol. 9, September 2005

Long-haul travel from Germany will grow in the next years, TNS Infratest and SevenOne Media predict. Provided the personal budget allows, 33% of Germans consider to travel to a long-haul destination, the researchers say. But Germany will remain to be the number one destination for Germans (54%), followed by Spain (40%).
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85% of Germans prefer travel by car or by airplane for their holiday transportation, AutoScout24 Deutschland GmbH found out in a survey conducted in July. 11% name the railway as their preferred mode of transport, 2.5% name ships and 1.5% the bicycle.
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MICE business will pick up next year, 76% of buyers and agencies in 12 European countries asked by IMEX in May/June say. 18% even predict a significant increase, also 18% think that the growth will be slow.
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39.2 million passengers used German airports for domestic or international flights in the first half of this year, the Federal Statistical Office reports. That is 2.8 million more (plus 7.4%) than in the first half 2004. The number of domestic passengers inclined by 2.3% to 10.7 million, the number of international passengers grew by 9.5% to 28.5 million. 
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Munich International Airport begins to plan a third runway. Current capacities will be saturated by 2008, Flughafen München GmbH says. The number of passengers grew from 12 million in 1992 (the opening year) to almost 27 million in 2004.
 
Excerpts from issue No. 8, Vol. 9, August 2005

Price-worthiness is the most important selection criterion of German holiday makers this year, B.A.T Freizeit-Forschungsinstitut in Hamburg claims. While this argument was put forward by 57% in 1999, it reached a 68% share in 2005. Quality aspects diminished over the last years, e.g. cleanliness (1999: 58% - 2005: 48%), tranquility (1999: 49% - 2005: 42%), healthy climate (1999: 61% - 2005: 52%) and food (1999: 61% - 2005: 54%). 44% of East Germans and 37% of West Germans look for “cheap” accommodation. Shopping opportunities are more important to women (37%) than to men (16%).
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Almost 40% of all German travelers 14 years and older will spend their main holiday at a beach destination this year, a study published by TNS Emnid-Institut and commissioned by Mediaedge:cia claims. While this type of vacation is most popular with every second of those under 50 years, only 25% of the 50+ group name beach holidays their favourite type of vacation. 15% of those 50 years and older prefer to hike or go on bicycle tours, 10% most enjoy cultural experiences and new horizons. City breaks are most popular with those over 50 and under 30 years (12% each). The most popular destinations outside Germany this year are, according to TNS, Italy (11%), Turkey (9%), East Europe (9%), Spain (8%), Austria (7%) and non-European countries (7%).
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German consumers 50 years and older will account for between 52 and 56 million holiday trips each year between now and 2010. According to a study of Willy Scharnow-Institut für Tourismus der Freien Universität Berlin this includes short and long holidays in Germany and abroad. The most popular foreign countries of the 50+ group are Austria, Spain and Italy. When going on a longer trip, they prefer beach destinations and other relaxation opportunities. The 50+ group makes up 43% of the population in Germany now.
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The German tourism market will grow by an average of 3.1% per year until 2008, A.T. Kearney writes in a study. Total turnover thus will reach almost 40 billion Euro in three years. The consultant sees three trends: Brand awareness will grow, the middle segment between luxury and discount will shrink, and package tourists will demand more individual attention. The segment of individually organized holiday trips will grow from 9% in 2000 to 30% in 2008.

Excerpts from issue No. 7, Vol. 9, July 2005

The majority of German tourists is relaxed on a high alert level concerning the perils of travel. As Elvia Travel Insurance in Munich found out in their annual Security Barometer, tourists pay increasingly attention to particular holiday destinations but enjoy travel. This is true for package customers as well as individual travelers, the study, which researches the “gut feeling” of tourists, says. While the group with the highest feeling of insecurity grew from 34.3% in 2004 to 39.7% this year, the group with no second thoughts about security grew from 13.6% to 18.5%. And while package tourists are more sensible to the general risks of certain destinations, individual travellers worry more about shortcomings of services. 50.4% of package tourists think that accommodation problems pose the greatest risk to a good holiday. For 72.5% of individual travellers to have an accident or a motor breakdown is risk number one.
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The popularity of domestic holiday destinations with German tourists is heavily influenced by their security feelings, researcher TNS Emnid-Institut in Bielefeld found out in a study commissioned by Mediaedge:cia in Dusseldorf.
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50% of Germans between 14 and 69 use the Internet for purchasing, the Gesellschaft für Konsumforschung (GFK) says. According to their “Online Shopping Survey”, the largest growth sectors for e-commerce 2004 were drugs and package tours. 2.6 million Internet users had booked holidays online, plus 42%. Most recommended pages for hotel searches were Google (9.1%), Hotel.de (8.0%) and HRS (7.5%). 

Excerpts from issue No. 6, Vol. 9, June 2005

TUI’s safety and crisis management systems were recently certified by PricewaterhouseCoopers (PwC). The certificate attests that TUI meets all requirements for an efficient crisis management (DIN EN ISO 9001, IDW standard for auditing early risk identification systems as well as Enterprise Risk Management/Integrated Framework, COSO II). Overall, nine elements that make up the standard were defined and tested. These are tourism crisis management objectives, crisis prevention, crisis identification, crisis analysis and evaluation, monitoring activities in the framework of tourism crisis management, crisis communications, monitoring and modifying measures for tourism crisis management, organization of tourism crisis management and documentation of tourism crisis management. The experts from PwC carried out more than 100 different tests. In the process they checked whether TUI had implemented adequate crisis prevention measures, such as safety checks for hotels and transfer services. Whether or not external information sources, such as the German Foreign Office, geological institutes or meteorological services were systematically analyzed with respect to safety matters, how fast information was passed on to the crisis team or whether the technical infrastructure was adequate to handle an emergency were all checked. The sensitivity of the staff at the destinations to internal crisis communications needs to be raised through training, though. TUI Deutschland intends to subject itself to an external safety audit every three years.
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The European Commission’s Directorate-General for Transport and Energy has received ten times as many complaints from air passengers as before the new rights of passengers went into effect February 17, 2005 (Regulation No 261/2004 of the European Parliament and of the Council of February 11, 2004). When investigating these complaints, the Commission discovered that the new national bodies responsible for monitoring compliance with the new rights were often unable to process such complaints efficiently and that the approach differed from one country to another. The Commission asked the bodies to send it precise and detailed information about the resources which they have received from the Member States and the number of complaints received and dealt with since February 17, 2005. The Commission will examine this information, and reserves the right to initiate infringement proceedings if it ascertains that the Member States are not giving due priority to the protection of air passengers’ rights and are not applying the European Regulation. The Regulation establishes common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights.
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Trade publication FVW and consultant Dr. Fried & Partner have launched a new monthly index, measuring the business climate in German tourism (“Touristischer Vertriebsklima-Index”). There are different indices for leisure and business travel.
www.fvw.de (Background)
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The German automobile club ADAC has tested the security standards of 30 ferries operating in the Baltic Sea, the Mediterranean and between the Canary Islands. "Penelope A" of Greek Agoudimos Lines, sailing between Mykonos and Rafina, was found “very faulty”, "Snav Sicilia", sailing between Naples and Palermo, and "Volcán de Tenagua", sailing between Tenerife and El Hierro, were rated “faulty”. Best ferry was "Color Fantasy" of Norwegian Color Line, sailing between Kiel and Oslo. All Baltic ferries were rated “very good” or „good“. ADAC reports that test experts were sometimes hindered doing their job.
 
Excerpts from issue No. 5, Vol. 9, May 2005

Over 90% of German MICE agencies and corporate decision makers expect stable or growing business this year, a study of Travel Marketing Factory GmbH (TMF) in co-operation with IMEX Frankfurt found out. 39% of the events will take place in Europe. 82% of the experts predict stable or growing demand for overseas destinations.
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Sales in Germany for ocean-going cruises reached 1.14 billion Euro in 2004, according to „The German Cruise Market 2004”, the annual study of the German Travel Agencies and Tour Operators Association (DRV), plus 6.3% compared to 2003. The total number of passengers was 583,043, plus 8.5%. The average voyage lasted 9.8 days, the average price per cruise dropped by 2.1% to 1,955 Euro. The market share of German cruise companies was 66.4%. 32% of all voyages took place overseas (mostly Caribbean and South America), the share of European routes dropped from 75.7% in 2003 to 68% in 2004. 59% of cruise retailers reported more customers than 2003, 28% less, 13% no change in numbers. For the running year a plus in passenger numbers is expected by three quarters of those surveyed, while 86% foresee a plus in sales.
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Sales in Germany for river cruises reached 355.6 million Euro in 2004, according to „The German Cruise Market 2004”, the annual study of the German Travel Agencies and Tour Operators Association (DRV), plus 13.3% compared to 2003. The total number of passengers was 306,516, plus 11.5%. The average price per river cruise climbed from 1142 Euro in 2003 to 1,160 Euro in 2004. Growth destinations were the Danube, the Nile and the Jangtsekiang, while France, Russia and the Ukraine lost German passengers. 74% of river cruise retailers reported more sales than 2003, 17% less, 9% no change in sales. For the running year most of them expect growth in passenger numbers and sales.
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Exhibitors on German fairs are typically small and medium enterprises (SME), AUMA - Association of the German Trade Fair Industry says. 83% of exhibitors taking part in trade shows have a staff of up to 500, 54% of up to 50. And 77% of exhibitors have sales less than 50 million Euro, 42% less than 2.5 million Euro. The total number of German companies participating as exhibitors on shows within the country is 56,000. On average they take part in 5.2 domestic fairs and 2.5 fairs outside the country within two years, spending a total of roughly 250,000 Euro.

Excerpts from issue No. 4, Vol. 9, April 2005

In 2004, German consumers age 14 and older went on 65.4 million holiday trips lasting five days or longer, according to the “Reiseanalyse 2005“ of the Forschungsgemeinschaft Urlaub und Reisen e.V. (F.U.R). This corresponds roughly to the 2003 figure (minus 0.8 million). 45 million of these trips were international. Even in difficult times, holiday travel ranks number three in the list of “consumer products hard to cut back”, behind food and health. The market share of package tours was 47%. The share of air travel went up from 32% to 36%. Since ten years, senior citizens are the dominant growth factor in travel, and they prefer to travel to foreign countries. Consumers between 14 and 29 increasingly pick German holiday destinations. 70% of Germans had specific holiday plans in January, the highest figure since 2001.
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In 2004, adult Germans took a total of 274 million domestic/outbound trips with at least one night away from home - holiday, business and VFR combined. In comparison to the previous year, World Travel Monitor writes, travel volume thus rose by +3% even as overnight accommodation volume dwindled (-2%). The domestic/outbound trips led to a total spending volume of 120 billion Euro (-2%). 200 million trips were domestic, 74 million outbound. Compared to the year before, growth was stronger in domestic trips (+3%) than in the outbound trips (+2%). Holidays accounted for 47% of the domestic/outbound trips taken by the Germans, and reflect a 2% volume increase over the past year. The other private trips (at a 41% market share) likewise recorded a 2% gain. German business trips also increased in 2004 (+6%). With market share at 16%, Spain was the leading outbound holiday destination for the Germans in 2004. Austria follows closely at 15%, as does Italy at 14%.

Excerpts from issue No. 3, Vol. 9, March 2005

German tourists and business travellers have spent about 58 billion Euro in 2004 outside Germany (plus 1.5% compared to 2003; same level as 2001), according to the „Reiseanalyse“ of Dresdner Bank. For the first time, German travellers spent more money in Austria than in Spain. It is the fourth consecutive year that Spain receives a shrinking income from Germans; the minus has reached almost a quarter of former income. Turkey now enjoys more income from German travellers than the USA. For 2005, a total spending of 59 billion Euro is seen possible. Most important factor for travel demand is the domestic economic situation. Long-haul travel will benefit from the strong Euro. Concerning incoming tourism in monetary terms, Germany now ranks number five worldwide (20.9 billion Euro in 2004). Growth sectors in German tourism are all-inclusive products, city breaks, wellness and cruises. Market share of last-minute travel dropped to 20% from 30% in 2002/2003.
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Germans continue to travel in high numbers but cut their holidays shorter, the BAT Freizeit-Forschungsinstitut in Hamburg says in its „Tourismusanalyse“. 53% went on a holiday last year - the same percentage as 2002 and one percentage point more than 2003. But the average length of the holiday last year was only 12.8 days compared with 18.2 days in 1980 (1990: 16.3 days; 2000: 14.8 days). Only 53% of all trips last year lasted longer than two weeks (1992: 81%; 2000: 74%).
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Germans will go on 65 million holiday trips lasting five days or longer this year, the “Reiseanalyse 2005” of F.U.R in Kiel predicts. Most important destinations will be Germany, Spain, Italy, Austria and Turkey. Destinations in Southeast Europe and the Eastern Mediterranean will experience less growth than before, with the exception of Bulgaria.
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80% of German last-minute travel goes to the Mediterranean, Ulysses Web-Tourismus in Munich says. The monetary volume of last-minute travel in Germany 2004 was 2.4 billion Euro, the number of last-minute trips reached 5.57 million. More than half of the last-minute trips are booked online. Women are more likely to book last-minute than men.

Excerpts from issue No. 2, Vol. 9, February 2005

Lufthansa’s FFP Miles & More reports a volume of unused bonus miles worth 491 million Euro. Since 1993, Miles & More has been growing 20% annually. The value of the worldwide volume of unused FFP bonus miles is reported to be 700 billion Euro.
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DFS Deutsche Flugsicherung GmbH, the German air traffic control, has lowered their fees. The en-route fees are now 20.2% less than before, the take-off and landing fees 28.3%. Two examples: The DFS fees for a Boeing B737 flying Hamburg-Munich are now 581 Euro instead of 750 Euro before, the DFS fees for an Airbus A340 flying from Frankfurt to New York are 630 Euro now instead of 830 Euro. - Traffic handled by DFS last year grew by 6.7% (European average: plus 4.8%).
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A worldwide poll by Global Markets Insite shows that US foreign policy and terrorism concerns have caused many consumers to shun US travel companies. According to GMI World Poll, 56% of Japanese, 36% of Germans and 32% of French are less likely to visit the USA for tourism or business because of the geopolitical policies and the war in Iraq. Overall, 55% of international consumers indicated negative perceptions of the USA. 24% of Germans said they would avoid flying US airlines. An example of a company that has managed to build its brand with a generally international image is Visa. Only 15% of the consumers identified as boycotting American brands said they would boycott Visa. In comparison, 48% of consumers surveyed said they would definitely boycott American Express. The GMI World Poll conducted an 8,000 international consumer survey on America’s image abroad, US foreign policy and American multinational brands on December 10-12, 2004. The study found that one third of the 8,000 international consumers stated that American foreign policy, including the war on terror and the war in Iraq, most influenced their image of America; only 17% indicated that American movies and music most influenced their image. 

Excerpts from issue No. 1, Vol. 9, January 2005

Westdeutsche Landesbank (WestLB) has sold its 31.3% holding in TUI AG to Deutsche Bank which in turn sold a 17.3% stake to a Spanish consortium of Riu Hotels (10%), Grupo de Empresas Matutes (Fiesta Hotels) and the Valencia-based savings bank Caja de Ahorros del Mediterráneo. The remaining 14% stake will be sold by Deutsche Bank to institutional investors in Europe and North America. WestLB’s sale price is said to be almost 1 billion Euro.
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37% of Germans plan to spend more in 2005 than in 2004, the Semiometrie study of TNS Emnid and SevenOne Media found out. Main consumer targets are furniture, travel and PCs/Internet.
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Employees in Germany take increasingly shorter holidays than they could, market researcher WSI in Dusseldorf found out. About 75 million free days worth 9 billion Euro were not taken compared to 66 million five years ago. WSI says, the reason is fear of loosing the job.
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TV sales for travel products will continue to boom in Germany, Augsburg University predicts. While the volume of travel sales through teleshopping amounts to less than 1% of all travel spending, turnover in this field has tripled since 2001.
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About half of the German customers of car rental companies look at the price only when deciding a brand, researcher TNS Emnid found out. Only 10% select the car rental company because of quality considerations. Europcar and Sixt enjoy more customer loyalty than their competitors. The study was made between January and October 2004 among customers who rent a car at least once on month for business or private reasons.