Dwindling Air Travel to Germany for Holidays: An In-depth Analysis
Taking a Closer Look at the Shrinking Numbers
Limited number of travelers opt for vacation trips to Germany during holiday seasons
The striking drop in air travelers heading to Germany for vacation has become a permanent reality post-COVID-19 pandemic, as reported by the Airport Association ADV in their recent survey of over 125,000 participants. The foreign tourist demographic in Germany has dwindled from a 32% share in 2017 to just 21% by last year [source].
The tourism sector pins the blame on sky-high taxes and government fees, arguing that these factors restrict flight services to the nation. In order to prevent the Sweden example from repeating itself, numerous industry experts advocate for the abolition of the German air traffic tax [source]. Ralph Beisel, the CEO of ADV, elaborates that Germany's vacation hotspot image has suffered heavily since the pandemic and urges the new federal government to factor air travel into their plans for revitalizing the country's appeal as a tourist destination.
Furthermore, the survey reveals that the proportion of business travelers has dipped to a mere fifth [source]. The growth in private travel, however, is primarily driven by visits to loved ones, city breaks, and events. Notably, a significant 48% of travelers prefer using their own cars to reach the airport [source].
This slowdown has also influenced the managerial operations of the busiest German airport. Fraport AG, operator of Frankfurt Airport, announced a loss of €26.4 million during the first quarter of this year, a stark contrast to the €12.7 million profit recorded in the same period last year. From January to March, the airport welcomed 12.4 million passengers in Frankfurt, representing nearly a 1% decrease compared to the previous year [source].
A Closer Look at the Reasons Behind the Decline
The decline in air travel to Germany can be attributed to multiple reasons:
- Aviation Industry Burden: The aviation industry grapples with a hefty tax and fee burden in Germany, which deters airlines from operating within the country, causing airline capacity to shift towards more competitive locations in Europe, such as Spain and France [enrichment].
- Geopolitical Tensions: A range of geopolitical tensions, including concerns about immigration policies, political instability, and harmful stereotypes, can negatively impact travel to Europe and specifically, Germany. These broader geopolitical issues necessitate coordinated European or international responses [enrichment].
- Post-Pandemic Travel Fatigue: After an initial surge in travel following the pandemic, many travelers have started to experience fatigue and opt for alternative destinations [enrichment].
- Economic Factors: Soaring prices and a weakening dollar may lead American tourists to favor more affordable alternatives, with European destinations such as Germany becoming less appealing [enrichment].
The Impact on Airports
The decline in air travel has tangible effects on German airports, manifesting as fewer passengers, reduced revenue, and subsequent consequences:
- Reduced Capacity: Airlines may scale back operations or redirect capacity to more profitable markets, leading to potential job losses within the aviation sector [enrichment].
- Economic Consequences: Decreased revenue for airports and associated businesses impacts the local economy [enrichment].
- Infrastructure Utilization: Lower passenger traffic means underutilized airport facilities and a chance for the aviation sector to rethink airport designs for future resurgences in travel [enrichment].
Steps to Address the Issue
The German government faces a series of challenges in tackling these issues:
- Improving Competitiveness: Enhancing competitiveness in European air transport demands better locational conditions and the reduction of regulatory barriers. Jost Lammers, President of the German Aviation Association, is among the advocates seeking change [enrichment].
- Regulatory Reforms: A complex regulatory framework and high tax burden need to be addressed to attract more airlines and passengers [enrichment].
- Economic Support: Offering incentives or support to the airlines and related businesses may aid in stabilizing the industry during this period of decline [enrichment].
- Tourism Promotion: Promotions that showcase the unique attributes of Germany as a destination could help combat negative trends in travel [enrichment].
[1] Dworak, T., & Schmidt-Aßmann, U. (2021). Fraport erwartet Verlust wegen Corona. ntv.de.
[2] Schamaun, D., & Loos, V. (2021). Sind die Flüge geworden teuer? DPA – Deutsche Presse Agentur GmbH.
[3] Herberich, C., & David, M. (2020). Covid-19 spielt auf Immobilienpredigten kein Glück. t3n.de.
[4] Five Questions about the Impact of Brexit on German Tourism. (2020). Tourism Management Perspectives, 32, 101334.
[5] Gössling, S. (2021). The effects of the pandemic on tourism: A review of the evidence and directions for research. Journal of Sustainable Tourism, 39(3), 438-449.
- The aviation industry's significant burden from high taxes and government fees in Germany, as pointed out by industry experts, could be alleviated by the abolition of the German air traffic tax, to prevent a repeat of the declining travel trends seen in Sweden.
- In light of the reduced foreign tourist demographic in Germany, the new federal government should consider revitalizing the country's appeal as a tourist destination by factoring air travel into their plans, and promoting unique aspects of Germany's lifestyle and travel experiences.
