Market Update - 26.06.25

CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION

• Tourism must embrace AI or risk irrelevance, says VIR head: At the VIR Innovation Days, Michael Buller, chairman of Germany’s digital tourism association VIR, warned the industry is acting as if nothing has changed, despite AI driving fundamental transformation. He emphasized that automation is now accessible even with limited budgets, and companies must rethink processes to stay competitive. Buller called for targeted analysis of internal workflows, clear guidelines for AI usage, and staff training focused not just on tools but on digital literacy. While not a job killer, AI should relieve teams of routine tasks so they can focus on creative and consultative work. He urged the sector to foster a culture of experimentation and adapt proactively—before it’s too late.

https://trvlcounter.de/top-news/17475-%E2%80%9Eder-wandel-ist-da-%E2%80%93-und-wir-tun-so-als-sei-alles-wie-frueher%E2%80%9C/

• Travel agencies see limited last-minute boom despite efforts: Despite strong early bookings, many German travel agencies report no significant surge in last-minute travel for 2025. Rising prices, economic uncertainty, and political instability are making customers cautious, with many booking well in advance. The Turkey and USA markets are notably declining due to inflation and geopolitical issues, while Spain and Greece remain popular. Customers prioritize price and tend to book cheaper, planned vacations rather than expensive spontaneous trips. Some agencies try to boost last-minute sales with discounts, but overall demand remains subdued.

https://www.fvw.de/touristik/vertrieb/kurzfristgeschaeft-kommt-der-last-minute-boom-das-sagen-die-reisebueros-252727?utm_source=%2Fmeta%2Fnewsletter%2Ffvwammorgen&utm_medium=newsletter&utm_campaign=nl9548&utm_term=4b88336547f1a9f97d6317304c4f863e

• Holiday unaffordable for millions in Germany, says Destatis: New data from Germany’s Federal Statistical Office reveals that nearly one in five people (19.6%) in Germany cannot afford a one-week annual vacation away from home. The situation is especially dire for single parents (41.3%) and those living alone (33.4%). While the EU average stands at 28.2%, Germany performs slightly better—but the figure has worsened slightly year-on-year. Inflation and rising living costs continue to pressure low-income households, highlighting growing social inequality in access to leisure and travel.

https://www.fvw.de/touristik/datenanalyse/statistisches-bundesamt-eine-woche-urlaub-fuer-millionen-menschen-unbezahlbar-253275

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EU

• China Eastern challenges Swiss on Zurich–Shanghai route: Following its new Geneva–Shanghai service, China Eastern will launch flights from Zurich to Shanghai starting August 26, operating three times weekly. Swiss currently flies the route daily with an A340-300, but will reduce to six weekly flights from October 26. Unlike Swiss, China Eastern can use Russian airspace, cutting flight time, fuel costs, and wear, allowing for cheaper fares. Swiss and Lufthansa, both barred from that corridor, face growing pressure. Lufthansa has already reduced capacity on its Frankfurt–Shanghai route. European carriers are calling for political action against what they see as unfair competition.

https://abouttravel.ch/reisebranche/china-eastern-fliegt-swiss-in-die-parade/

• Barcelona airport plans major expansion to 70 million passengers: Spain’s Catalonia region, Transport Ministry, and airport operator Aena have approved a €3.2 billion project to expand Barcelona-El Prat airport. The plan includes extending the third runway, building a new satellite terminal, and upgrading existing terminals and parking facilities. The expansion aims to increase annual passenger capacity from 55 million to 70 million by around 2033. Environmental concerns have been raised due to impacts on nearby wetlands, but the project includes habitat restoration efforts. Supporters highlight economic benefits and improved connectivity, while critics warn of overtourism and environmental strain.

https://www.aerotelegraph.com/flughaefen/massiver-ausbau-flughafen-barcelona-plant-fuer-70-millionen-passagiere/w5m6n3d

• Flix’s €2.4 billion train expansion faces financial scrutiny: Flix is investing €2.4 billion in 65 high-speed trains from Talgo and Siemens to expand its European rail network. However, the Handelsblatt reports concerns over the company’s financial health, citing a €66 million net loss in 2023 and a shift away from its profitable asset-light model. Despite the investment, Flixtrain has yet to achieve profitability. The project’s funding relies on limited equity and significant losses in North America and Turkey.

https://www.countervor9.de/trends/flix-zugoffensive-als-riskante-wette

DESTINATION NEWS

• SPAIN: The Balearics are launching an airport campaign to promote responsible tourism. To combat overtourism and improve coexistence between locals and visitors, the Balearic tourism authority AETIB has launched a multilingual awareness campaign at all island airports. Under the motto “Illes Balears, cuidémoslas juntos” (“Let’s care for the Balearics together”), the campaign highlights key issues like water conservation, environmental protection, and respect for local culture. Starting June 20, messaging appears at Palma, Ibiza, and Menorca airports, and will expand to ferry terminals and online channels in July. Tourists are addressed directly “Are you responsible?” and encouraged to reflect on their holiday behavior. A related campaign targeting locals emphasizes sustainable transformation backed by EU funding.

https://abouttravel.ch/reisebranche/touristen-sollen-schon-am-flughafen-sensibilisiert-werden/

• JAPAN: Japan is planning to launch JESTA, a new electronic travel authorization system modeled after the U.S. ESTA, for visa-exempt travelers from 71 countries, including Germany, Switzerland, and Austria. Initially slated for 2030, the rollout is now expected as early as 2028–2029. JESTA will require travelers to register passport details, travel purpose, and accommodation in advance, enabling multiple short stays of up to 90 days. The system aims to improve border security, streamline entry, and prevent visa overstay. Costs are expected to align with similar systems, around $20.

https://www.countervor9.de/ziele/japan-kuendigt-elektronische-einreisegenehmigung-an‍

• USA: The Capital Region USA marketing cooperation will end June 30, with Maryland, Virginia, and Washington DC pursuing separate strategies. Virginia sees itself strong enough to succeed solo in the German market. Meanwhile, Visit Orlando and Visit Florida pledge to expand, not cut, their international marketing efforts, emphasizing the importance of Germany. Smaller destinations like Lubbock, Texas, form creative regional partnerships to attract visitors. Hawaii launches a new campaign targeting German travelers. Wisconsin strengthens its presence with dual representation. Despite political shifts, US tourism bodies show strong ongoing commitment to the German market.

https://www.fvw.de/touristik/destination/marketing-strategien-us-destinationen-bleiben-deutschland-treu-aber--253231

• THAILAND: Thailand launches local working spaces for digital nomads: The Tourism Authority of Thailand (TAT) has introduced the LOCO(AL) Working Space initiative to redefine work options for remote professionals. This nationwide campaign promotes workspaces embedded in local communities, blending cultural immersion with modern facilities. Focusing on three key regions—Chiang Mai, Bangkok, and Phuket—the concept offers unique “SPACE TONES” tailored to different work preferences, from quiet to inspiring environments. In Bangkok, Trok Dilokchan, a restored cultural alley, combines traditional architecture with co-working spaces, encouraging nomads to engage with local life rather than work isolated in high-rises.

https://www.business-travel.de/thailand-richtet-lokale-working-spaces-fuer-digitale-nomaden-ein/63404/