Europeans are booking holidays again. And they pay more

Europeans are booking holidays again. And they pay more

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Despite uncertainty over the pandemic, millions of holidaymakers, particularly in the UK, have already booked trips and are spending even more than they did before the coronavirus struck, according to Tui (TUIFF).
The world’s largest tour operator said in a statement on Tuesday that 2.8 million customers are currently booked for the summer of 2021 – a 44% decrease from the same point in 2019, but more than a fifth higher than the total guests he recorded between mid-June and October. 2020.
A company spokesman, who manages 15 cruise ships and more than 400 hotels, said vouchers and changes to previous voyages make up about half of these bookings, but that the pace of new orders has increased in recent weeks. Last month, average daily bookings were 70% higher than in December, Tui said.

The company, which has its headquarters in Germany, only needs small installments on some of the summer holidays in 2021 and is offering free changes up to 21 days before departure on trips booked before 9 February. But it does not expect much from his travels, according to CEO Fritz Joussen.

Joussen said in a call that the average price of bookings had increased by 20% compared to the summer of 2019, driven by a larger number of packages and hotel offers and the demand for more expensive holidays after a year in which many people stayed at home .

“Holidaymakers are catching up and are willing to pay more for their holidays,” he said, adding that the historically high savings rate in the European Union means consumers have to spend more. “I believe we will see a good summer,” he added.

Joussen’s optimism is in line with research by the World Travel and Tourism Council, which said last month that many large travel companies reported a significant increase in advance bookings. “A strong summer of travel is expected as the sector begins its recovery process from the end of March,” according to the industry body.

However, not everyone agrees. New coronavirus variants have led many countries to reintroduce travel restrictions and quarantine requirements over the past two months, with the weighty outlook for the holiday season.

The UN’s World Tourism Organization (WTO) said in January that the outlook for a rebound in travel and tourism appeared to have “deteriorated” this year and that it could take up to four years before international tourism returns to 2019 levels.

Exclusions remain in place throughout Europe, and many countries are discouraged from traveling. The UK on Tuesday announced new rules requiring travelers from 33 countries to quarantine ten days at their own expense in designated hotels. Failure to do so could result in fines of up to £ 10,000 ($ 13,800) and even imprisonment.

At the same time, vaccines are expected to help restore consumer confidence and ease travel restrictions.

For Tui and other travel companies, much depends on the rate at which shots are rolled. Joussen said it was a ‘good coincidence’ for the company that the UK vaccine was growing so fast because it was one of Tui’s largest customer markets.

More than 10 million Britons, or about 15% of the population, have received their first dose of Covid vaccine, including 90% of people over 75, according to the government.

Earlier this month, Ryanair (RYAAY) Group CEO Michael O’Leary said during an investor presentation that once 50% of the population is vaccinated, travel restrictions should be lifted, which would support a “reasonable recovery” in air traffic by the summer of 2021. The British government has not yet announced plans to ease restrictions.

Along with vaccines, Joussen said that ‘reliable and inexpensive rapid tests’ would also make it possible to open travel and scrap quarantine regulations.

Tui said they expect customers to book holidays later and at shorter notice due to uncertainties surrounding the pandemic and travel restrictions.

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