German spending on international leisure travel is set for a
bump in 2018 as Germans feel more confident in their own economy and the safety
of international destinations
Germany’s outbound market accounts for
over 30% of the overnight stays made by EU citizens but the market is set to get
even bigger in 2018 on the back of strong economic performance, receding security
concerns and high consumer confidence finds the report, an extract
of which can be downloaded for free here.
The research expects spending by
Germans on international leisure travel to exceed €80 billion in 2018 as a
result of renewed confidence among German travellers to travel further abroad
and return to a variety of destinations, principally Turkey, alongside record
high expectations of improving wages.
This comes off the back of an
improving environment in 2017 after setbacks in 2016. The report notes a much
wider number of destinations reported good growth in 2017 than in 2016 and
destinations previously in free-fall appeared to bottom out. Destinations
reporting strong growth came from those close to home in Scandinavia, Belgium
and the Netherlands, and further afield, Greece, and Balkan and Southeast Asian
countries.
In terms of where these trends will head
in 2018, perennial favourites Italy, Spain and Greece will continue to be the
most popular but Spain will see its growth rates hit by diminishing price
competitiveness. Already more expensive than many destinations in the Eastern
Mediterranean at the start of last year, average daily rates rose strongly in
the market in 2017 and tourism-focused tax rates have further increased costs. Instead,
Turkey seems set to experience double digit growth, German tour groups are
returning to Tunisia, and Southeast Asian countries seem likely to continue
recent high growth as Germans look at long-haul destinations more frequently.
Turkey, Tunisia, Morocco, and Egypt
will also be helped in 2018 by receding security concerns that have previously been
at the forefront of German travellers minds. The report notes that polls have
found that German fears of terrorism have decreased from its peak in 2016 and
it is no longer the top concern.
All of these destinations are seeing
extremely strong early booking indicators in 2018 according to travel agents,
who also report record confidence for growth in 2018. They are being helped by
extremely strong economic indicators, particularly with regard to conditions
for the average German consumer. Seasonally adjusted unemployment is at a
post-Reunification low and consumer confidence is at a record high when it
comes to expectations of wage increases. These expectations are not baseless,
as the German labour market now has little excess labour to call on and German
firms seem to be aware that wages must rise. Furthermore, German consumers have
been reluctant to loosen their purse strings when overall European economic
conditions have been poor and risks high, but this has shifted as of early
2018, with the eurozone reporting the best economic conditions since the
Recession and renewed confidence. This will boost Germane travel consumer
spending in 2018 and, barring an economic shock, mark it out as a vintage year
for the outbound market.
You can
download an excerpt from the report by clicking here. Use this free excerpt
from our German Travel Consumer 2018
Report to understand the trends shaping German destination choices and
spending patterns both at home and abroad in 2018.
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- Detailed analysis of Germany’s economy and its ramifications for consumer travel spending.
- More than 80 charts, figures and tables of data detailing the state of the German travel consumer.
- Outbound and domestic travel market overviews and outlooks.
- A breakdown of the German journey to booking, including lead times, key apps and most popular websites.
- Age and location breakdowns for key online behaviors, destination preferences and spending.
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