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28. June 2012
Related introduces tourism newsletter
Hear ye! Hear ye!

Related will be bringing you the news, when we distribute our new tourism newsletter. We have already dispatched our first of its kind and will send out a fresh one every third month, the next one in early September.

The tourism newsletter is thought as a service to all of our tourism clients and partners. We have a lot of insight knowledge that we would like to share with our tourism network outside of Denmark, so that they can put that knowledge to work in any way they prefer.

The newsletter will be published continually here on our website.


News: Still increasing number of plane tickets being sold
In the first four months of 2012, International Air Transport Associations (IATA) airline companies have sold tickets for 1.1 billion kroner. That is an increase of 6% compared to the same period of last year.

The Danish Travel Agencies Association (DRF) stresses the remarkable fact that the IATA Airline companies have been able to make the same on an average ticket in the first four months of 2012 than they did in the entire year of 2011. The first four months are traditionally some of the months with lowest profits, but still the average ticket price is 3.000 – the same as last year’s average.

If this tendency continues throughout the year, we will see a record turnover and a record amount of IATA-tickets sold.

Source: Take Off

News: Fewer bank holidays will cost us tourism jobs
Should the Danish Government choose to remove one or more Danish bank holidays, the Danish tourism industry will suffer. Fewer days off will mean lower income for all tourists related businesses.

Especially the restaurants, theme parks, hotels, landlords, water parks, and shops are vulnerable. In the weeks with a bank holiday almost all tourist related business goes up.

Removing bank holidays would damage the entire tourism apparatus, lowering the amount of visitors from Sweden, Germany and Norway. That is the opinion of the Association of Danish Holiday House Letters.

: Markedsføring

News: More passengers – less capacity
The international flight traffic went up 7% last month, compared to an increased capacity of 4.3%. In Europe alone the numbers were 6.1% and 2.3%. The numbers come from the international flight organization, IATA.
On a global scale the flight traffic was 6.1% higher in April and the load factor went up 2.3%-point to 79.3%.

The Middle East continues its progress with 16% more passengers in April. Though positive, this growth has to be seen in the light of the Arabic Spring.
Tony Tyler, head of IATA, is happy for these increasing numbers, but warns the companies that making money off of these new passenger-numbers will still be a struggle due to the high level of competition.

He recommends a simple management-model: strict administration of capacity, control the expenses, and make sure to have cash at your disposal.

: Tic Travel

Tendency: The Danish travel industry is struggling
New research among the charter operators indicates the charter industry in Denmark will be less than 50.000 travels in 2012 ending up 1.200.000 charter travels and in 2011 1.250.000 was produced.

A huge over capacity and high petrol prices have reduced all charter operators profit remarkable in the latest annual reports, combined with the pressure from aggressive low budget airlines invading the market.

As per new CEO of Danish Charter operators Stefan Vilner, also director of Kuoni in Denmark, there has been an overcapacity this winter leading to big discount on travels.

Vilner confirms their company having decrease in profit in all their Danish companies; Apollo and Falk Lauritsen Travel.

The negative development with less profit has also affected the result in the annual reports by other travel operators, investigated by Jyllands-Posten.
The profit per travel has falling, and in some companies there has been a deficit with tens of millions. This counts for Spies with only 32 million dkk in 2011. The result for 2010 was 43 million.

Bravo Tours also ended 2011 with less profit along with Århus Charter. Star Tours did increase in 2011 but will end of with big loss this year affected by an expensive winter season with too big program and overcapacity a.o. Thailand and overseas and high petrol prices. The coming winter program for overseas will be reduces and focus on the nearby markets.

The low fares airlines are competing with the charter operators more than ever, with introducing the classical popular charter destinations for low budget prices, continues Stefan Vilner. The internet offers better search engines for composing your own holiday package including lodging, car hiring and other services.

Birthe Madsen, CEO at Star Tours, estimates the charter industry is covering 60 % of travels, characterized as classical beach holiday to the known destinations.

This market share is under pressure due to low fares airlines are increasing more than charter operators.

Charter holiday offer s security, which no other forms of travels can provide or compete with nowadays. Payments are not lost in case of bankruptcy and the travelers will be taken care of during the stay. Charter travels are easy booking without spending hours on searching on the internet, ends Birthe Madsen.

Beginning of May started out with bankruptcy of the Danish Airline Company, Cimber Sterling, which was a merging of the former Sterling, Maersk and Cimber Airlines.


Tendency: The Danes are going to spend less on this summer’s vacation
The Danish bank, Nordea, has stated that the average Danish household will spend 12,390 kroners on this summer’s vacation. That is 11.5% less than last year and is the result of economic crisis, job insecurity, and future tax reforms in the tax system. The upside is the Danes will probably be spending more money in Denmark.

This prediction surprises consumer economist, Ann Lehmann Erichsen, who says that we have a new consumer mentality in Denmark – an “after crisis behavior”.

: Politiken

Tendency: Norwegian business travelers prioritize location
Norwegians prioritize location when deciding where to stay on business trips. The hotel breakfast used to be the main factor.

: Travel News

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