High performing locations in Europe in summer season 2022
Air journey to the southeast nook of Europe considerably exceeded pre-pandemic (2019) ranges within the peak summer season months of July and August. The 2 largest locations, Turkey and Greece, each exceeded pre-pandemic ranges of worldwide customer arrivals by 9% and a couple of% respectively. Air journey to Albania (a comparatively small vacation spot with lower than 1% market share of European flight arrivals) was additionally up by 28%. Whereas no different main nation locations recovered to the numbers seen in 2019, Slovenia, simply 7% down, Iceland, 8% down, and Portugal, 10% down, got here shut.
The listing of finest performing metropolis locations was headed by Istanbul, which recorded a 2% improve in flight arrivals. It was adopted by Athens, 7% down, Reykjavik and Porto, each 8% down, and Malaga, 13% down.
Elements that impacted journey tendencies
Main elements driving the sturdy efficiency of Turkey embody an ongoing decline within the worth of the Turkish lira and its openness to the Russian market, from the place direct flights to most of Europe have been banned. In the summertime of 2019 Russians accounted for 4% of all arrivals to Europe, whereas in 2022, this dropped dramatically. Greece has carried out strongly as a vacation spot all through the pandemic by implementing comparatively visitor-friendly COVID-19 journey restrictions.
European locations may have attracted extra guests throughout the summer season months if the aviation business had been higher ready to deal with the surge in demand for journey throughout late spring and early summer season. Had there been no disruption, ForwardKeys estimates that the restoration in intra-European flight bookings would have been 5 percentage-points increased.
Journey audiences most desirous to journey in summer season 2022
An evaluation of origin markets reveals that inside Europe, Greece has confirmed essentially the most resilient, with departures for European locations in July and August matching 2019 ranges. It’s adopted by Poland, 9% down, Spain, 12% down, the UK, 13% down, Denmark, 14% down and Portugal 15% down. General, intra-European departures have been 22% down.
The strongest extra-European market was the USA, simply 5% down on 2019. It was adopted by Colombia and Israel, each 9% down, South Africa, 10% down, Mexico 12% down, and Canada and Kuwait, each 13% down. General, extra-European origin markets have been 31% down.
Journey outlook 2022 and 2023; what’s future demand?
Whereas there’s a lot speak of recession and inflation damaging the prospects of a post-pandemic journey restoration, the pattern stays constructive. In July and August, air journey throughout the entire of Europe was down by 26%, nonetheless, the outlook for the subsequent three months reveals that as of 31st August, flight bookings have been 21% behind the equal second in 2019, with bookings for Turkey and Greece 20% and 5% forward respectively. The following finest booked locations are at the moment Portugal, 3% behind, Iceland, 7% behind and Spain, 15% behind.
The strongest origin markets are led by the UK, the place outbound flight demand for the subsequent three months is simply 2% down in contrast with earlier than the pandemic. It’s adopted by Spain, 3% behind, the USA, 5% behind, Eire 6% behind, and Germany 11% behind.
Olivier Ponti, VP Insights, ForwardKeys, stated: “The restoration from the pandemic has continued regardless of the journey chaos and capability reductions brought on by workers shortages. Proper now, ahead bookings for leisure journey present a continued restoration in air journey, post-pandemic; and, encouragingly, enterprise bookings are catching up. Nevertheless, we’re nonetheless cautious concerning the outlook as a result of the continued warfare in Ukraine and consequent influence on vitality costs will negatively have an effect on European economies, which can possible dent client confidence and company demand. That stated, there’s at the moment a focus of flight bookings throughout the autumn half time period peaks and Christmas, which may result in additional flight disruption if the current recruitment difficulties skilled by the aviation business persist.”
Tom Jenkins, CEO, ETOA, the European tourism affiliation, concluded: “The perception ForwardKeys gives is invaluable to our understanding of restoration. Beneath the numbers, the anticipated post-pandemic supply-side challenges inside Europe’s tourism ecosystem stay. Operators report problem in inserting enterprise, and erratic service ranges resulting from workers shortages and lack of consumer information. Logistic constraints and new taxes at vacation spot degree add complexity and price. Some hoteliers are doing effectively, seeing sturdy income at decrease occupancy charges resulting from sturdy demand for decreased stock. Others battle: even with excessive occupancy, revenue margins are eroded by quickly escalating prices. Unwelcome although these items are, they’re challenges posed by enterprise returning. The business is coping, however avoidable difficulties (corresponding to uncertainty on taxes) are irritating restoration.”
“ETOA’s membership displays the market, and we’re seeing renewed curiosity and exercise throughout Europe. Regardless of inflationary stress, demand is robust particularly from long-haul markets, each for product and the networking alternatives to seek out it. We have now keen patrons who’re struggling to safe the product they want, and the Asian market has solely begun to recuperate. Market situations are difficult, however operators can nonetheless promote and are proving their agility. A long-lasting restoration requires collaboration throughout the sector, private and non-private. Along with our members and companions, we’re right here to assist that.”
ETOA and ForwardKeys will share extra insights into the state of the European journey market throughout a webinar organised by ETOA on 13th September.