Speech of Norbert Fiebig, President DRV German Travel Association Ladies and Gentlemen, Enthusiasm among Germans for holidaying and travel remains high and unbroken – the mood remains a positive one, and figuratively speaking Germans have already packed their bags for the new travel season. For my part, I bid you a cordial welcome to this year’s ITB. As the travel association representing mainly German tour operators and travel agencies we are particularly pleased that last year demand for organised travel reached new record levels. Let me give you a brief summary of the latest trends and developments: 1 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication 1) Turnover among German tour operators increased by around one billion euros. Overall figures rose by almost four per cent and reached a new record of 26.3 billion euros. 2) Cruises in particular contributed strongly to last year’s growth. 3) Demand for quality, premium-segment holiday travel has risen substantially, which means that Germans are willing to spend more on their holidays, and 4), we are particularly pleased that visitors travelling with tour operators rose by 2.5 per cent. Despite an almost saturated market this shows the advantages of holidays organised by professional tour operators. It demonstrates that consumers recognise a quality product that provides the majority of holidaymakers with a service and sense of security. Let us turn to the successful destinations this past year. Traditionally popular destinations in the Mediterranean again attracted rising numbers of holidaymakers. Among the countries in Europe that attracted the most visitors were: 2 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication • Greece, which at 17.2 per cent reported a large increase in visitors, • Spain (plus 5.9 per cent), • Italy (plus 5.1 per cent), • Tunisia (plus 4.9 per cent), • Malta (plus 4.1 per cent), • Bulgaria (plus 3.2 per cent), • and Turkey, which attracted 1.9 per cent more visitors travelling with German tour operators. Thus, countries in the Mediterranean were once again the travel destinations that attracted the largest number of holidaymakers during the summer months. However, it was not only traditional short-haul and mediumdistance destinations that were extremely in demand. Long-haul destinations also attracted more tourists, with 2.2 per cent more visitors able to make the dream of a faraway destination come true. The following travel destinations were particularly popular: • the Caribbean (plus 13.9 per cent), • South America (plus 10.3 per cent), 3 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication • and the Indian Ocean (plus 4.5 per cent). The most popular travel destination among Germans, Germany itself, along with its neighbouring countries that can be visited by car, train or coach, attracted an extra 2 per cent of visitors organised by tour operators. Last year, compared to 2013, the number of Germans visiting Egypt declined. The country continues to feel the repercussions of Arab Spring events in 2011. Egypt reported a 15.1 per cent drop in visitors, after previously recording an increase in 2013 over 2012. Morocco registered 5.6 per cent less visitors, while Cyprus experienced a 5.8 per cent decline in tourism. Thailand, a longhaul destination, also reported a slight drop in visitor numbers. So much for developments as far as destinations are concerned. As regards the sales of around 9,830 travel agencies in Germany we are happy to report there was a strong increase in 2014: At 23 billion euros, overall turnover reached record levels for the third year running. 4 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication This increase was accompanied by a slight rise in travel agencies mainly selling products from multiple tour operators. This success is no coincidence. Only recently, the consumer magazine Stiftung Warentest published a review confirming that tour operators gave customers qualified and professional assistance. The review’s three main points were as follows: The price of a traditional package tour is the same whether sold by a travel agency or online. Customers save themselves a lot of time and worry by engaging the services of qualified personnel, and the overriding advantage of travel agencies is the individual advice their employees offer. They provide customers with extra information that is helpful and important, for example on travel regulations as well as health tips. Ladies and Gentlemen, Those were the figures for 2014 and the forecast for the upcoming travel season in 2015 gives us cause for optimism too. 5 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication Early booking levels are high, which naturally is also due to tour operators giving discounts. One of last year’s trends is much in evidence and repeating itself: Germans book their summer holidays a long time in advance and even earlier every time they do so. According to figures calculated by the market research institute GfK, by the end of January cumulative growth in turnover had reached five per cent. Against the backdrop of a stable economy we are confident that both the tour operator and sales markets will continue to grow. At present, compared to last year holiday bookings for Egypt are high, with increases reported in the order of double digits. Greece and the Balearics have also registered growth in bookings in the order of double and single digits respectively. Once again, this shows that German travel enthusiasm remains unbroken. The majority of Germans are eager to go on holiday, relax and explore cultures and regions. And no crises around the world will change that. Interestingly, crises usually only have a short-term effect, leading to tourists travelling elsewhere for a certain period. 6 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication Take the Canaries for example: last winter the islands clearly benefited from a decline in bookings for Egypt. In the long term travel destinations recover even after major turmoil and disasters. I can name two examples: Example 1 - Tunisia: in the wake of the Arab Spring the country suffered an almost 50 per cent decline in visitors from Germany. However, it is now experiencing continuous growth and is well on the way to pre-crisis tourist levels. Example 2 - Sri Lanka: visitors stayed away after the country was hit by the 2004 tsunami and because of political conflicts. The result was a significant drop in tourism. Since 2010 visitor numbers from Germany have tripled and risen significantly to over 100,000, with no end to growth in sight. At this point let me briefly touch upon a hotly debated subject: general developments as far as prices and exchange rates are concerned, the fall of the euro against the dollar and the decoupling of the Swiss franc from the euro exchange rate. With summer holiday bookings now peaking, tour operators are able to take advantage of the current trend in prices and exchange rates. 7 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication Travel agencies can offer catalogue-listed all-inclusive packages at favourable rates as tour operators are usually insured against fluctuating exchange rates. Individual services such as flights, hotels and car hire which customers can order separately at short notice often cost significantly more than the all-inclusive packages of tour operators. Consequently, customers who book with tour operators are at a distinct advantage. With that, I would like to conclude this summary of results and trends regarding the German travel market and will gladly take your questions. Thank you for your attention. 8 Media contact: Sibylle Zeuch, Press Officer Telefon: +49 (0)30 2 84 06-15, E-Mail: presse@drv.de Responsible fort he content: Torsten Schäfer, Director Communication