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German travel industry sentiment plunges

Travel industry sentiment in Germany has plunged with the spread of the Omicron Covid-19 variant after the German market led the summer recovery in Europe.

The German government announced new travel restrictions this week, including a ban on travel from the UK except by German residents.

At the same time, Germany’s leading travel trade title FVW TravelTalk reported plunging confidence among the country’s travel agents.

The proportion of agencies describing the current business situation as ‘satisfactory’ fell from 57% in November to 13% in December.

The monthly FVW TravelTalk sales climate index, produced from rolling research by Munich-based management consultancy Dr Fried & Partners, found 84% of agents described current sales as ‘poor’. up from 33% in November.

The proportion of agents expecting an increase in demand in the next six months fell from almost two thirds (63%) in November to 37% in December.

And only one in four agencies expected earnings to improve in the next half year, down from half a month earlier.

Meanwhile, the chief executive of Lufthansa said the carrier is to cut 10% of its winter flight schedule – or 33,000 flights – as a result of the Omicron variant’s impact on bookings.

Carsten Spohr told German newspaper Frankfurter Allgemeine Sonntagszeitung: “From mid-January to February we are seeing a sharp downturn in bookings.

“For the winter flight plan, we have therefore cut 33,000 flights across the group, or around 10%.”

Spohr added that the group – which also comprises Austrian, Swiss, Brussels and Eurowings – would have cancelled more January flights due to weak demand if it didn’t have to keep them operational to maintain its take-off and landing slots under EU rules.

The plunge in confidence came as Germany tightened entry requirements for visitors from ‘virus variant areas’ including the UK.

All entries from UK and other ‘virus variant areas’ now require a negative PCR test regardless of their vaccination status, with the requirement also applying to transit passengers and children over the age of six.

The age limit was previously 12.

The federal government joined state health ministers in arguing the requirements would slow the spread of the Omicron variant while more people are vaccinated.

The UK was added to Germany’s virus variant list of countries on December 20, since when only German citizens or residents travelling from the UK have been allowed entry. All are required to quarantine for 14 days on arrival.

The German federal health body, the Robert Koch Institute, has also classified France. Denmark and Norway as high-risk areas.

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