Tourism - Study: Travel remains expensive
Tourists must prepare for higher prices during their travels in the coming years. The demand for hotel accommodations or cruises is growing stronger than ever before, according to Hamburg-based credit insurer Allianz. Companies operating in the industry hold significantly more pricing power than in the past.
Globally, approximately 10 percent more people are expected to travel by air, according to the study. Europe, with its weak Euro, remains the most important destination for tourists worldwide. "Real savings rates remain low, so many are investing their money in long-distance travel. US citizens also benefit from a stronger dollar, which gives them more purchasing power abroad," says Milo Bogaerts, Allianz Trade CEO, in a statement.
Hotels worldwide reached their highest occupancy rate of 68 percent in May since the pandemic. The cruise business has already recovered strongly in 2023 and is expected to grow by an additional 15 percent this year. The largest providers anticipate that the summer of 2024 will surpass the summer of 2019 in terms of passenger numbers and profits.
Allianz Trade Study on Global Tourism
- Despite the rising inflation in Germany, many tourists are still planning to visit, drawn by the competitive pricing in the European travel industry, especially considering the weak Euro.
- The growing popularity of cruises is not limited to Germany; internationally, cruise companies are experiencing significant growth, as people seek unique travel experiences despite climate change concerns.
- Hamburg, known as a major tourism hub, is not only attracting domestic tourists but also international ones, contributing to the boost in the city's cruise business and overall tourism industry.
- As the climate change implications on travel become more apparent, companies like Allianz are encouraging sustainable practices within the tourism sector, such as promoting eco-friendly cruises in cities like Hamburg.
