The German ¾ σχε plans to reduce holiday spending due to rising prices for goods and services, with one in two saying they will reduce the number of holiday days this year, both abroad and at home. The desire for travel, however, remains strong.
According to research by PricewaterhouseCoopers, high inflation limits the increased hopes that the tourism industry had for this year, after two years of pandemic. The ¾ of the Germans will reduce the duration of their vacation, look for cheaper options or cancel their plans for leisure travel. 60% of respondents also said they would give up "spontaneous travel", e.g. for three days in other cities, for visits to concerts or amusement parks. "After two years of vacationing on the balcony, people finally wanted to travel again. However, high inflation threatens to reduce the resurgent desire for travel, while people, aware of the increased cost of the holidays, review their spending on them ", points out the head of the Transport and Logistics department of PwC Germany Ingo Bauer.
All types of travel abroad, both individual and organized, are affected by potential consumer savings, as the research shows. More and more people will opt for cheaper accommodation or camping, with 78% saying they will not opt for a popular holiday resort or wellness facility this year due to increased costs. It seems that the independent apartments or houses that provide a kitchen are less affected, with 68% stating that they will not choose them for this year. But even those planning a camping vacation are considering limiting either the length of their vacation or their spending there.
Of those who say they will be on vacation this summer, 60% are considering renting an independent apartment or house where they can prepare their own meals.
Regarding the means of transport of choice, 73% stated that they would consider limiting air travel due to the increase in ticket prices, 71% would restrict boat travel and 61% travel by car. In fact, 62% say that travel costs are more important than comfort and that is why they would choose the cheapest means.
"The results of the research show that with the growing uncertainty about the evolution of the cost of living, the planned spending of the Germans for holidays is being revised. "The travel and tourism industry will have to deal with this situation with attractive discounts for early bookings, attractive offers to upgrade accommodation and lower prices on the activities offered", comments Mr. Bauer, highlighting the finding of the survey that wants the majority of respondents not yet thinking about canceling the holiday. "Therefore, the tourism industry has every reason to hope that, despite price fears, travel will continue to be important as a cultural experience and leisure," adds the PwC executive.
Source: RES-EAP