The Germany-based company requires only small advances on some of its packaged vacations in the summer of 2021 and is offering free exchanges up to 21 days before departure on trips booked before 9 February. But he does not expect to discount many of his trips, according to CEO Fritz Joussen.
Joussen said in a conference call that the average price of reservations increased by 20% compared to the summer of 2019, driven by a greater number of flight packages and hotel offers and the demand for more expensive holidays after a year in which many people stayed at home.
“Tourists are recovering and are willing to pay more for their holidays,” he said, adding that the historically high savings rate in the European Union means that consumers have more to spend. “I believe that we will see a good summer,” he added.
Joussen’s optimism is in line with research by the World Travel and Tourism Council, which said last month that many of the top travel companies reported a significant increase in advance bookings. “A strong summer of travel is expected, as the sector begins its recovery path from the end of March,” said the industry body.
Not everyone agrees, however. New variants of the coronavirus have led many countries to reintroduce travel restrictions and quarantine requirements in the past two months, weighing on the outlook for the holiday season.
The UN World Tourism Organization (WTO) said in January that the prospects for a recovery in travel and tourism this year “appear to have worsened” and that it may take up to four years for international tourism to return to 2019 levels.
Blockages remain in place across Europe and many countries discourage travel. The United Kingdom announced new rules on Tuesday requiring travelers from 33 countries to be quarantined in designated hotels for 10 days at their own expense. Failure to comply can result in fines of up to £ 10,000 ($ 13,800) and even imprisonment.
At the same time, vaccines are expected to help restore consumer confidence and ease travel restrictions.
For Tui and other travel agencies, a lot depends on the pace at which the photos are released. Joussen said it was a “good coincidence” for the company that the vaccine was launched in the UK so quickly because it is one of Tui’s biggest customer markets.
More than 10 million Britons, or about 15% of the population, received their first dose of a Covid vaccine, including 90% of people over 75, according to the government.
Along with vaccines, Joussen said that “reliable and inexpensive rapid tests” would also make it possible to open quarantine rules for travel and disposal.
Tui said it expects customers to book vacations much later and in a shorter time due to uncertainties surrounding the pandemic and travel restrictions.