End of the “Travel Ban”: bookings for trips to the USA are picking up

Status: 21.09.2021 7:13 p.m.

The travel industry breathes a sigh of relief: From November onwards, vaccinated German vacationers can travel to the USA again. Airlines and tour operators are reporting strong growth in bookings. But the crisis is far from over.

by Notker Blechner, tagesschau.de

The relief at the Lufthansa headquarters is great. “Finally”, the airline cheered in a press release, “finally: after around 20 months many Europeans can fly to the USA again”. The German travel association DRV, the mouthpiece of the tour operators and agencies, is also pleased about the relaxation that they believe has been overdue for months. The move by the USA had been expected for a long time and is now good news for customers and travel providers, said DRV President Norbert Fiebig. “With over two million visitors from Germany every year, the country is the most important long-distance travel destination for the German market.”

The EU had already allowed vaccinated and recovered US tourists to enter Europe in June. Conversely, hardly anyone expected that it would take so long for the United States to reopen its borders in return. In March 2020, US President Donald Trump imposed an entry ban on Europeans.

40 percent increase in bookings at Lufthansa

The announcement by the US government under President Joe Biden that it would allow fully vaccinated Europeans to re-enter the country after a year and a half from November caused US business for airlines and tour operators to skyrocket. Lufthansa reported a booking increase of 40 percent for Lufthansa flights over the North Atlantic in the first hours after the decision of the US administration.

The crane airline, which had to be supported by the state during the crisis, is now planning to further increase capacities for transatlantic flights. Lufthansa already offers more than 200 weekly connections to 17 American cities – almost as many as before the pandemic. Even with a few passengers on board, the business is worthwhile because the planes are full of cargo, explained Lufthansa manager Harry Homeister. Freight prices have been high for months.

If business and private travelers take off again for the USA, Lufthansa would benefit greatly. Because the North America flights are considered the most profitable routes. Before the pandemic, US business accounted for a good half of passenger traffic and profit.

TUI and FTI also expect great demand

The US business also plays an important role for TUI. The USA is one of the top ten travel destinations. The tour operator also saw a surge in interest in America travel. Inquiries about this in the travel agencies and search queries on the TUI website have already increased significantly, emphasized a group spokesman tagesschau.de. This should be reflected in the bookings in the short term.

The Munich competitor FTI also expects more demand in the next few months – especially for the east of the USA. “In view of the open perspective, we now expect a steady increase in the number of bookings in the next few months,” said managing director Ralph Schiller tagesschau.de. Especially the “Sunshine State” Florida is a popular destination even in winter due to its always summer temperatures.

Still not at the pre-crisis level

However, the USA will no longer be able to save the tourism year 2021; the positive effects in the last two months of the year are too small. In addition, the USA is more of a summer destination, emphasizes a spokesman for DERTOUR. Because of the slack travel in the first four months of the year, the industry will not reach the level of before the pandemic in 2021. TUI expects 60 percent of the capacities of the pre-crisis level. In Germany, the travel offer is likely to reach 75 to 80 percent.

The summer holiday season got off to a promising start – in June, according to the market researcher Travel Data and Analytics, bookings were 42 percent above the pre-Corona level. From July, however, the momentum weakened. A high number of cancellations also slowed the recovery of the travel industry. A good every fourth trip in August was canceled, according to the travel agencies. Lufthansa even spoke of 75 percent of trips canceled in August.

Hope for the fall season

Now hopes are directed towards the autumn travel season. This time it is likely to be extended because many citizens would have waited because of the spread of the Delta variant, according to TUI. “After a rather cloudy August, many long for sun in the second half of the year – the run on the Mediterranean destinations is correspondingly high,” explains TUI Managing Director Stefan Baumert. According to TUI, the top 3 destinations in autumn are Antalya, Mallorca and Crete. The tour operator increased capacities in autumn and is offering additional connections to the Balearic Islands, Greece or Madeira until November.

Competitor FTI is also speaking of a satisfactory early bird season so far. Most popular for autumn holidays are Turkey, Spain with the Balearic and Canary Islands, Greece, Egypt and the United Arab Emirates as well as the Indian Ocean, especially the Maldives and Mauritius, and the Caribbean, such as the Dominican Republic, says Managing Director Schiller.

Return of business travelers

Business trips are also picking up again. Lufthansa reported an increase of 160 percent for August compared to March. Numerous trade fairs, congresses and company meetings now attract business tourists in autumn. However, the record year 2019 with 195 million business trips in the German economy is unlikely to be exceeded for a long time. “It will be a few years before we get there again,” believes Niklas Andreen from the international business travel management provider CWT. Because of video conferencing and home offices, many companies have greatly reduced or canceled business trips. The DRV expects 30 percent fewer business trips in the long term.

If the number of new corona infections soar again due to increasingly contagious variants, the debate about vacation only for vaccinated people will gain momentum again. So far, most of the organizers still rely on the 3G rule. Only individual providers such as Alltours only allow guests with full vaccination protection into their Allsun hotels from the end of October.

More and more cruises only for vaccinated people

The situation is different with cruises. TUI and Aida Cruises have recently carried out several cruises only for vaccinated people. Unvaccinated people are also undesirable on cruise ships in the USA.

How big the restrictions will be for the winter holiday season is still open. However, several ski lift operators have already made it clear that the 3G regulation would be the worst-case scenario and would not be feasible. In any case, the demand for ski trips is booming. TUI recently reported a strong early bird demand for holiday resorts in Austria and South Tyrol. “It is already becoming apparent that there will be a rush for the ski areas in winter,” said TUI managing director Baumert.

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