Domestic Winter Tourism Worries Due to German Consumer Restraint

The continued economic weakness in Germany could slow down the previously flourishing Alpine tourism this winter. In Switzerland and Austria, guests from Germany still make up the largest, or at least one of the largest groups in many winter holiday resorts.

Bad Signs from Germany for the Domestic Winter Season

According to economists and experts, a main cause is the uncertainty of German consumers who currently prefer to save their money rather than spend it. Ski holidays in particular are traditionally very expensive. According to an old rule of thumb, a week in a ski resort costs as much as three weeks of summer vacation. Not least because of these high costs, many people tend to save on winter holidays rather than summer ones. The volume of travel fluctuates less than the expenditure, says Dennis Utzerath, tourism expert at the Boston Consulting Group (BCG). "In Germany, the main holiday is only very limited. People then choose cheaper destinations. What suffers are the short trips, the second and third holidays."

Summer Holidays Often Take Precedence

According to a travel analysis by the Research Community for Holidays and Travel (FUR) in the northern German city of Kiel, a trend towards limiting to one main holiday trip per year was already noticeable in the past two years. "While in previous years many travellers took several holiday trips or additional short breaks, more emphasis is now placed on the one main trip, where travellers want to treat themselves and not pay too much attention to the price," says tourism researcher Friedericke Kuhn. "Since the ski holiday often represents a second trip alongside the main summer holiday, a decline can be suspected here."

Domestic Winter Tourism: Lack of Snow Has Not Deterred Guests So Far

In the past two winters, there was a lack of snow in many parts of the Alps, but by no means a lack of guests. German holidaymakers also contributed to this. However, for the latter, the signs this year - in general and not just on holiday - are pointing towards frugality, even though many people have a bit more money in their pockets. "Wages have risen more strongly this year than inflation," says Jürgen Michels, the chief economist of BayernLB. "Despite higher real incomes, consumers have held back, the savings rate has increased. This may reflect that households are increasingly worried about the political situation, and that concerns about jobs also play a role."

Impacts Expected on Winter Tourism in Austria and Switzerland

When travelling from Germany to Austria and Switzerland, it is expected that "it will not run as well as last winter," says BCG expert Utzerath. The booking intake in the hotel industry has been weak in recent months, according to the consultant, although starting from a strong period at the beginning of the year. Therefore, advance bookings alone are not a reliable indicator. The background: Many people cancel again, others rebook at short notice, and still others decide at short notice whether or not to travel. Among German hoteliers, the mood this autumn is worse than in the previous two years, as can be seen from the regular economic surveys of the Munich-based Ifo Institute. "On the one hand, consumers do not seem to trust the decline in the inflation rate," says Klaus Wohlrabe, the head of the Ifo surveys. "On the other hand, many are increasingly worried about whether their job is still secure, so some money is being set aside."

Increase in Long-Distance Travel with Consequences for Winter Tourism

Another effect comes into play: "During the Corona pandemic, domestic destinations were strong," says BCG tourism expert Utzerath. "Exactly those have not performed very well this year. It also looks bleak in neighbouring countries." The Ifo surveys provide a clear indication that Germans are increasingly drawn to more distant destinations: The mood among travel agencies and tour operators - who arrange many trips to long-distance and overseas destinations - is therefore considerably better than in the accommodation industry. "They are doing well, which suggests that destinations abroad are being booked more," says Ifo survey chief Wohlrabe.

Mood in the Bavarian Hotel Industry Currently Very Depressed

The most important German winter holiday destination is Bavaria, where the mood in the industry is currently very depressed. "The hotel industry is feeling the economic situation, there is consumer restraint," says Thomas Geppert, state managing director of the Hotel and Restaurant Association Dehoga in the Free State. "But the businesses are mainly not doing well because costs are getting out of hand. The earnings situation is extremely difficult. Staff, energy, food, everything has become significantly more expensive, plus there is the increase in value-added tax." This is confirmed by BCG consultant Utzerath: "The issue of cost increases is seriously damaging business for hotels in Germany."

(APA/Red)

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