Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic;
Tourism flows inbound; Tourism flows outbound; Tourism receipts and
expenditure; Tourist attractions; Transportation; Travel accommodation; Travel
retail
Executive summary
Market Driven by World Cup and Improving Economic Climate
The Football World Cup had a positive impact on several sectors in 2006, as it
boosted incoming tourism. At the same time, it did not cannibalise sales from
other sectors as overall demand for tourism services was boosted by good
summer and autumn weather, and the beginning of a recovery in business travel
activity and consumer confidence.
Strong Growth in Incoming Tourism
Arrival numbers continued increasing in 2006, and also at a higher rate than
in the previous year, with incoming tourism receipts showing similar growth,
benefiting the German tourism industry as a whole. Despite the domestic
attraction of the World Cup, outgoing tourism also continued to grow at a high
level, albeit by a lower rate than in 2005. However, greater consumer
confidence is illustrated by an acceleration in outgoing tourism expenditure
during 2006 compared to the previous year. Despite faster growth in incoming
receipts, Germans remain net spenders, with outgoing expenditure almost 2.5
times as high as incoming receipts.
Travel Accommodation and Car Rental Saw Faster Growth in 2006
The travel accommodation sector benefited most from the World Cup effect, with
a much higher current value sales growth rate in 2006, mainly due to more bed
nights spent by incoming tourists. The car rental sector also benefited,
although the most important factor behind this was strong growth in business
rentals.
Transportation Growth Slows at a High Level
Value sales in the transportation sector continued to see strong growth in
2006, albeit at a slightly slower rate than in 2005. Higher ticket prices as a
result of fuel surcharges could not offset a slight slowdown in growth in air
passenger numbers. Low-cost carriers continued to make share gains at the
expense of holiday carriers, but growth slowed slightly as year-on year
comparisons become tougher.
Travel Retail Under Pressure from Direct Sales
The travel retail sector is seeing considerable changes in booking and demand
patterns, especially direct bookings bypassing the agency channel, which
resulted in a continued decline in the number of stationary travel agencies.
Overall sector sales continued to increase, however, with some growth
generated by growing on-line sales through intermediary platforms, such as
hotel booking sites. Stationary travel agencies managed to withstand these new
trends to some extent, just posting positive sales growth, with stronger
business travel an important growth driver.
Internet Makes Further Share Gains
Internet sales made further inroads in 2006, especially in the accommodation,
transportation and car rental sectors. Consumers increasingly book separate
services directly from suppliers, such as airlines or car rental operators,
while accommodation bookings grew both through bookings directly from large
hotel chains, as well as hotel intermediary platforms. Against this
background, strategic partnerships between various suppliers and cross-links
between their websites are becoming increasingly important as a means to
generating sales growth.
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