As a result of the crisis the tourism industry now has a better understanding of the risks, but has also recognised the potential for new opportunities. Travellers are displaying greater environmental and socially responsible awareness, for example. That was the takeaway from all the discussions on the Friday for B2B visitors at the virtual We Love Travel! event. Providing organisers, service providers and customers draw the right conclusions, the potential exists for a future with profits, highly satisfied customers and a long-term positive effect on source countries and destinations.
1. The main problem is uncertainty
From 1950 to 2019 overnights increased sixty-fold globally, said Peter Kautz from Statista. “But then the coronavirus arrived.” With tourism activities having suffered a 55 per cent loss in turnover worldwide (as things stood), the pandemic had eclipsed all other crises to date, he said. Roland Gassner from Travel Data & Analytics added that although the collapse was similar to 9/11 or the financial crisis, its duration and prospects for recovery were not. This would take longer and no one could say how long.
2. The situation is not hopeless
“Stop whining“, said many of those at the discussions. Pointing to the most recent surveys, Michael Buller from Verband Internet Reisevertrieb (VIR) said “people want to travel“, all the more so if they had been unable to for a long time. What was more they had “the money, time and desire to travel again”, said Ulf Sonntag, a market researcher at the Kieler Institut für Tourismusforschung. Even if they could not necessarily choose the destinations they wanted they were “booking trips like mad“, said Roland Gassner, director of Business Development, Travel Data + Analytics.
3. Transparency builds trust
With people now making new travel choices, maintaining trust has become more important. ”Trust has become the new currency for successful tourism marketing.“ The crisis has impacted on all stakeholders to a greater or lesser degree. None were prepared, nor were the customers. Greater cooperation was necessary to overcome the situation, said Christian Tänzler, press spokesman for Visit Berlin.
4. Successes achieved by compliance and diversity must be maintained after the crisis
“Travelling must not stop“, said Rika Jean-Francois, CSR commissioner for ITB Berlin. It broadened travellers’ minds and promoted understanding that ensured the survival of this unique planet, its natural beauty and ethical values. “That is the only way the successes achieved by compliance and diversity can be maintained and built upon after the crisis.“ Martina von Münchhausen from the WWF said “everyone should regard travelling as a special mission and not just get on low-cost flights again.“
5. Socially responsible awareness is increasing
The loss of tourism revenues has had a serious impact on livelihoods and human rights at travel destinations in some cases. “We also need to consider what it means for local residents“, said Dirk Inger from Deutscher Reiseverband. The coronavirus was a wake-up call for all other crises (Harald Pechlaner, Katholische Universität Eichstätt-Ingolstadt).
6. Customers are eager for more information and want to feel secure
Exchanging information and a sense of security have become more important than ever. Both organisers and people at destinations have recognised that. Detlef Schroer from Schauinsland Reisen was certain customers would not give up their demands after the crisis. That was precisely the challenge for providers.
7. Geographically, the coronavirus has spread tourism apart
As a consequence of the coronavirus pandemic, in addition to traditional mass tourism destinations other more exclusive ones are becoming popular too. This could have a positive impact on destinations’ sustainability, by putting an end to mass tourism and overtourism for instance, but only if stakeholders identify with that goal. Harald Pechlaner, professor of Tourism Studies at Universität Eichstätt, said “newly discovered travel trends, staycationing for example, need to be consolidated.“ Even if it was hard to imagine every German taking their holidays in Germany in the future, the destinations that had experienced an economic upturn needed to do everything to maintain this trend.
8. Online bookings are here to stay
Between every offline booking and a departure there is a delay. Particularly at a time when coronavirus restrictions were changing daily that meant there were risks, said Peter Kautz from Statista. Uwe Frers from ADAC Camping said that Germany’s overflowing campsites in the summer had made that clear to even the most stubborn traditionalists.
9. Pricing wars are brief and unsuccessful
The tourism industry’s traditionally slim margins meant that pricing wars in order to win back customers were really out of the question. Nor would they make any sense, said Detlef Schroers from Schauinsland Reisen. One argument against them was that the crisis had triggered customer demand for various extra services. Nevertheless, one could not rule out the intentions of some providers.
10. Premium travel is on the rise
Premium travel, which gives customers a greater sense of security and is associated with better hygiene, is on the rise, as evidenced by the latest bookings. Generally speaking, there will be new services available to travellers, private airport shuttles to the hotel for example.
11. Package tours are alive and well
With their promise of better security, hygiene and flexibility for the customer, package tours will survive the coronavirus crisis. According to Detlef Schroer from Schauinsland Reisen, their strong point is that they offer customers a greater sense of security in very uncertain times. However, customers would have to pay corresponding prices, otherwise it would not make economic sense.
12. The market needs new products
For Boris Raoul from the Invia Group, focusing completely on the customer was the key to handling the situation and its consequences. Travel agencies had to accompany the consumer on the customer journey with tailor-made products.