Corona dent (almost) over?

FTI boss gives summer outlook - and reveals why the rental car is more expensive

Created: 02/14/2022 05:37

By: Thomas Schmidtutz

Ralph Schiller: The head of the Munich tour operator FTI Group is going into the summer season with great confidence.

© FTI Group

The Munich-based FTI Group is entering the summer business with great confidence.

The bookings are now at “pre-corona level,” said FTI boss Ralph Schiller.

Munich – At the Munich tour operator FTI Group, business is currently picking up significantly.

After a dent because of the Omicron variant, you have recently seen unusually strong bookings, said FTI boss Ralph Schiller

.

Many customers reserved longer, booked a hotel or room in a higher category "or both," said the head of Europe's third largest tour operator - including FTI, Windrose and Sonnenklar.TV belong to the group.

In addition, the number of reservations for rental cars and campers is “at a record level”.

spoke to Schiller about the most popular travel destinations in 2022, the risk of rising ticket prices and the situation in crisis-ridden Turkey. 

Mr. Schiller, hardly any other economic sector has been hit as hard by the corona pandemic as tourism.

The industry is now heading for the third Corona summer.

Recently, more and more industry giants have expressed confidence about the prospects for summer 2022.

Is that just purposeful optimism?

We can only talk about ourselves, but yes: the development is currently very positive for us too.

Because the situation in the corona pandemic is continuing to improve?

Whenever customers felt like they could travel, we did good business.

That was also the case last year.

Between June and October 2021, customers booked at very short notice due to the Corona situation.

Customers are now hoping that traveling will be easier again. 

And the booking numbers are increasing again?

There was a small omicron dent in November.

But now bookings are picking up again.

Things are looking very good for the summer season.

The bookings are likely to be just ten percent below the level before the outbreak of the corona pandemic.

Last spring, there was also confidence in the industry at first, including you.* But in the end, the high expectations were not fulfilled.

Why should 2022 be better?

Because we have a completely different lead.

Last year, during the full winter lockdown, we had practically no bookings for the summer.

The business actually only started when the lockdown ended in May.

This year we have a completely different development here.

Customers also traveled during the winter.

In the meantime, we are even back to the pre-Corona level when it comes to bookings for the summer season.

Which goals are particularly popular?

Like last year, Greece is right at the top.

Many people apparently feel safer on islands during the pandemic.

This also applies to Cyprus or Malta.

In addition, Spain including the Canary Islands and Italy are in high demand.

But now other markets are coming back.

This is the case in Egypt, South Africa or the USA, for example, where we see very high bookings.

In addition, Thailand attracts.

And the business with rental cars and campers is also booming.

We are experiencing a historic high in bookings.

Why?

Popular markets such as the USA or Australia are reopening.

And when it comes to rental cars, many people now know that spontaneous bookings on site could become tight and the prices will rise accordingly.

Just like last year...

....where the prices for short-term bookings were extremely high.

In some cases, the rental car prices for on-site bookings were 50 to 60 percent, in some cases even 100 percent, above the usual level.

Where will the prices for rental cars be in the current year if you book early?

We have to reckon with a premium of 15 percent compared to 2019.

Turkey is traditionally one of the most popular holiday destinations.

Recently, however, the lira has experienced a drastic price drop.

So will holidays in Turkey be particularly cheap this year?

For guests, the country will be much cheaper than in previous years, especially when it comes to ancillary costs such as going to restaurants or shopping.

But one must not forget: most holidaymakers book an all-inclusive product when staying in Turkey.

The ancillary costs play a subordinate role.

Our contracts with the hoteliers on site are in euros.

At the same time, bookings for Turkey are also increasing sharply, especially for families.

There probably won't be much change in price. 

In view of the currency development, you could at least push for price concessions, for example in hotels?

At the moment, demand for Turkey is also increasing in other source markets.

This applies, for example, to Eastern Europe or Great Britain.

The willingness to make price concessions is correspondingly manageable, especially since there has just been a 50 percent salary increase for staff in Turkey due to high inflation.

Holidays at home have been in high demand during the pandemic.

The situation is now brightening for the summer in many countries.

Is Germany a holiday destination threatened with a setback in 2022?

Germany has always been the favorite destination of Germans.

However, there has been a somewhat misleading discussion over the past two years that Germany has been rediscovered as a travel destination during the pandemic.

In fact, Germany has not been rediscovered.

But the capacities on the German North Sea and Baltic Sea coasts are very limited.

And the corresponding holiday accommodations were traditionally fully booked in summer.

Most recently, the situation was aggravated by the fact that the hotels were not allowed to fully utilize their capacities due to the Corona requirements.

Against this background, we assume that we will probably have more guests in Germany in summer - provided there are no new corona restrictions.

But the percentage will drop because more people will move abroad again.

With the pandemic, the reserves of many households are also at record highs.

There has recently been a trend towards higher quality and longer trips.

Does this last?

Yes, this trend continues.

The guests stay longer or book a higher category with the hotel or the room or both.

Overall, the revenue per guest and booking is around 15 percent above the pre-corona level.

Beach life on Mallorca: The Balearic island should also be very popular with holidaymakers next summer.

© Clara Margais/dpa

FTI boss Schiller: Tickets are likely to become more expensive over the course of the year

What does the development mean for your business?

Will operational figures finally be in the black again in 2022?

That is the plan.

That would be the first time since 2019?

Yes.

So overall you have a great year ahead of you?

If there is one thing we have learned during the pandemic, it is that things can change again very quickly during the pandemic.

We therefore remain cautiously optimistic.

There are certainly a few question marks for travelers this year, above all rising oil prices.

This is also reflected in kerosene.

Airport fees are also increasing.

What does that mean for ticket prices?

The airlines usually hedge against rising kerosene prices.

Therefore, the development on the oil market is not yet reflected in the ticket prices.

But that is likely to change as the year progresses.

Then the tickets should also be more expensive. 

Ryanair and Eurowings have already announced higher prices for the summer?

If bookings are better than expected, hedging might not quite do the trick.

This could then lead to price adjustments.

What does this development mean for holidaymakers?

We always recommend booking early.

Now that's not surprising.

Of course, that also helps us as a company.

But this year, of course, that makes even more sense than usual. In view of the high inflation rates, hedging and increasing demand from other source markets as well, one can only recommend making a decision early – especially if you are already very committed to your goal. 

*Merkur.de is part of IPPEN.MEDIA