Safety and trust along with value for money are by far the most important sales factors for both travel agents and customers in Germany, according to the recent fvw Destination Study 2016.
For 49% of travel agents and 57% of customers, safety and trust are the top factor when deciding on a destination, the survey of 262 travel agencies found. Similarly, 49% of agents described value for money as a vital factor, although this was seen as only essential for 32% of customers.
The other top three sales decision factors trailed well behind. The image of a destination was only seen as a vital factor for 10% of agents and 11% of customers. The tour operator brand was essential for 8% of agents but a mere 2% of customers. Similarly, the hotel brand was vital for 7% of travel agents but only 2% of customers.
The survey results were welcomed by some tour operators. “This is good for us,” said Markus Zahn, head of Portugal specialist Olimar. “The issue of safety is becoming more relevant and putting destinations such as Italy, Spain and Portugal into strong focus. Demand for Portugal holidays is picking up strongly.”
Cultural holidays specialist Studiosus has emphasised safety issues for many years. “We deal with the issue differently to others. We provide transparency where possible and try to keep the risk potential on trips as low as possible,” said owner Peter-Mario Kubsch. One result is high customer loyalty with a repeat booking rate of 75% among the tour operator’s average 100,000 customers a year.
One market segment hit by these decision factors is city trips, following various terror attacks in major city destinations in recent months.
Dertour, Germany’s largest tour operator for city trips, has a drop in bookings for this segment. “At the moment we are slightly below last year,” said Frank G?tze, who is responsible for short trips. But he added optimistically: “Customers are booking at much shorter notice. So the current drop is not so bad.”
Studiosus chief Kubsch agreed: “Customers are avoiding city destinations at present.” Bookings have fallen for large city destinations, with Istanbul suffering in particular.
Other important factors for success in the German market, according to tour operators, include ‘customer experience’, sustainability and flexibility. Customers are increasingly looking for authentic experiences and sustainable trips, specialist tour operators believe.
Ute Dallmeier, managing director of luxury holidays specialist Windrose, told fvw that the company has a single-digit increase in bookings compared to double-digit growth last year. “We are also feeling the general caution but not as strongly as others,” she commented. European destinations and cruises are selling well but demand for the Middle East has slumped, she reported.
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