SRV President: Travel industry hits the ceiling this year
Published: Friday, Mar 22nd 2024, 11:31
Back to Live Feed
After the strong recovery from the coronavirus slump, Swiss tour operators are no longer on the up. The industry will hit the ceiling this summer.
"We have had a very good winter with more sales than in the best times," says Martin Wittwer, President of the Swiss Travel Association, in an interview with the news agency AWP. "But the peak has been reached with regard to the summer."
There is currently a certain reluctance to book beach holidays, especially among families with children. In view of general inflation, rising health insurance premiums and rent increases, the middle classes are looking more closely at their money. "Families in particular are still hesitant to spend their money. The beach vacation boom is no longer going anywhere," says Wittwer.
People are still waiting to see how the weather develops in Switzerland - depending on this, vacations may be postponed until the fall. Price sensitivity has also increased again. "People wanted to travel immediately after corona, so prices weren't a priority. The willingness to pay more was there," says the SRV President. There was a great need to catch up on travel.
"People are now thinking more about what they spend their money on. They are paying more attention again to whether there are other offers with a better price/performance ratio," says Wittwer. Price sensitivity is back to the pre-corona level of 2018 or 2019.
Nevertheless, no compromises
But it has not yet reached the point where people are booking lower hotel categories or shortening the length of their vacation. "The Swiss are not the guests who choose a cheaper category. Instead, they look to see if they can get the same thing for less. People don't want to do without," says Wittwer. This will increase the competitive pressure on tour operators compared to last year.
"But I don't see any dark clouds for the travel industry - on the contrary: people want to travel. They won't let that be taken away from them," says the SRV President. However, it is a challenge for tour operators to bring good offers to the market. "The travel business is doing well, but the industry is not and never has been a sure-fire success."
This applies above all to the beach holiday business in the Mediterranean. Individual and long-haul travel, which later recovered from coronavirus, is still developing very well. The peak has not yet been reached there, says Wittwer.
No fear of chaos
Wittwer does not fear chaos at the airports this summer at the destinations like in summer 2022, when there were long queues at security checkpoints, flight cancellations, delays and lost suitcases. In contrast, the strikes in Germany caused problems for the industry.
"I wouldn't plan to fly via the Frankfurt and Munich hubs at the moment," says the SRV President. The strikes are happening at increasingly short notice. What's more, you can't rely on the train because of the rail staff strikes. "The strikes are ruining the pleasure of traveling."
This plays into the hands of travel agencies. If you book with a tour operator, the entire trip is covered in the event of a strike, for example. The tour operator would then have to look for alternative destinations and routes or refund the money.
If, on the other hand, you put together your own vacation by booking with airlines, hotels and car rental companies, you have to take care of things yourself in the event of strikes or cancellations. People are becoming increasingly aware of this again.
Hardly any bargain prices to be expected
Wittwer does not expect there to be a shortage of seats on planes or in hotels: "Supply and demand are in a good balance." Conversely, he also does not believe that there will be overcapacity. Travel is therefore unlikely to become much cheaper. "Prices will remain where they are today."
But "it's not getting any more expensive." The price curve in the beach holiday business is at the ceiling. Inflation has also eased again abroad.
However, this does not apply to North America. "The prices in the USA are so high that they put people off. The USA has become too expensive. In my view, the current price-performance ratio is no longer optimal," says Wittwer.
Top destination Mallorca
The top destinations in the classic beach holiday business are still the same: In the western Mediterranean, Spain and the island of Mallorca are at the top. In the eastern Mediterranean, Greece and Turkey are in high demand.
When it comes to long-haul destinations, Thailand offers good value for money. However, the country is not a summer destination, says Wittwer.
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic