Europeans are booking vacations again. And they pay more

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Despite uncertainty about the pandemic, millions of holidaymakers, especially in the UK, have already booked trips and are spending even more than before the coronavirus, according to Tui (TUIFF).
The world’s largest tour operator said in a statement Tuesday that 2.8 million customers are currently booked for the summer of 2021 – a 44% drop from the same point in 2019 but more than a fifth more than the total number of customers registered between mid-June and October. 2020.
A spokesperson for the company, which operates 15 cruise ships and more than 400 hotels, said vouchers and changes to previous trips made up about half of those bookings, but the pace of new orders had increased those last weeks. Last month, average daily bookings were up 70% from December, Tui said.

The company, which is headquartered in Germany, takes only small down payments on some of its 2021 summer vacation packages and offers free changes up to 21 days before departure for trips booked before February 9. But she doesn’t expect to have to cut back. a lot of his travels, according to CEO Fritz Joussen.

Joussen said in an earnings call that the average price for bookings had increased by 20% compared to summer 2019, due to a higher number of flight and hotel offers and the request for more expensive vacations after a year in which many people have stayed at home.

“Vacationers are catching up and are willing to pay more for their vacation,” he said, adding that the historically high savings rate in the European Union means consumers have more to spend. “I think we’re going to see a great summer,” he added.

Joussen’s optimism aligns with research from the World Travel and Tourism Council, which said last month that many major travel companies reported a significant increase in term bookings. “We expect a strong summer of travel as the sector begins its road to recovery from the end of March,” according to the industry body.

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However, not everyone agrees. 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 United Nations World Tourism Organization (UNWTO) said in January that the outlook for a rebound in travel and tourism this year “appears to have deteriorated” and that international tourism could take up to four years to return to normal. 2019 levels.

Locks remain in place across Europe and many countries are discouraging travel. The UK announced new rules on Tuesday requiring travelers from 33 countries to self-quarantine at designated hotels for 10 days at their own expense. Failure to comply could result in fines of up to 10,000 pounds ($ 13,800) and even jail time.

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 plans are rolled out. Joussen said it was a “good coincidence” for the company that the vaccine rollout in the UK has been so rapid because it is one of Tui’s biggest customer markets.

More than 10 million Britons, or around 15% of the population, have received their first dose of a Covid vaccine, including 90% of people over 75, according to the government.

Earlier this month, Ryanair (RYAAY) Michael O’Leary, CEO of the group, said during an investor presentation that once 50% of the population is vaccinated, travel restrictions should be lifted, which would promote a “reasonable resumption” of air traffic. until summer 2021. The UK government has yet to announce plans to ease restrictions.

Along with vaccines, Joussen said “reliable and inexpensive rapid tests” would also open up quarantine rules on travel and scrap metal.

Tui said he expects customers to book vacations much later and on shorter notice due to uncertainties surrounding the pandemic and travel restrictions.

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