Distribución y Revenue Management

✈ In July, Spanish airlines increased domestic flight prices by nearly 12% compared to the same month in 2023, a stark contrast to the 2% rise in previous years. Year-to-date, the domestic ticket prices have surged by 24.7%. International flights, however, have seen a reduction of 5%. The average price for national flights in July was approximately €119. July also saw a slight dip of 1.2% in international flight prices from last year, but an 8% increase overall this year.

💰 TUI Group, Europe's largest tourism group, reported a 9% revenue increase to €5.8 billion in Q3, marking an eighth consecutive month of double-digit underlying EBIT growth, reaching €232 million, a 37% improvement. The group served 5.8 million travelers, with Hotels & Resorts achieving an underlying EBIT of €131 million, up 16% and occupancy at 80%. Cruise segment witnessed a rise in underlying EBIT to €91 million due to increased occupancy (98%) and 7% higher average rates (€235). TUI Musement's underlying EBIT grew to €19 million, with 2.8 million experiences sold. Overall, the company has doubled the underlying EBIT to €16 million within its Markets and Airlines segment and is expanding its product portfolio into Asian and American markets.

🏖️ In August 2024, Destinia reports a slowdown in last-minute travel bookings compared to previous years, with a notable decrease in demand. Average booking anticipation for August has risen to 55 days, an 85% increase from the 29-day average in 2023. Last-minute bookings for August dropped from 32% in 2023 to 16% in 2024, and bookings in the two weeks prior to the holiday decreased from 50% in 2023 to 39% in 2024. Travel costs have increased by 6%, with the average price now at 78 euros per person per night, up from 73 euros.

🏨 The iconic 1960s Hotel Lido, located in Torrent, Valencia, featured 60 rooms across four floors, two swimming pools (one Olympic-sized), a banquet hall and conference facilities, and over 10,000 square meters of gardens. It hosted thousands of weddings, communions, and baptisms and accommodated dozens of politicians. The closure of this symbolic tourist venue made a significant impact on the tourism industry.

✈ British Airways will stop flights to Beijing at the end of October with the winter schedule. Virgin previously ceased all flights to China, but IAG will continue flying to Shanghai. Despite domestic traffic in China reaching pre-pandemic levels, international flight recovery lags. London-Beijing traffic has increased with additional frequencies from China Southern and Air China. Flights now exceed eleven and a half hours due to detours to avoid Russian airspace, raising costs. No British flights to China's capital are expected until at least summer 2025.

📅 Chinese tourists are expected to increase their holiday budget in Spain by 11%-20% in 2024, according to Visa's Travel Trends 2024 report. Half of the surveyed foreign tourists have previously visited Spain, with cultural visits, beach leisure, and gastronomic routes being top attractions. Approximately 47% of Chinese and 46% of American tourists will spend over €3,000 per person, while 22% of Chinese and 21% of Americans are willing to spend over €5,000. Madrid, Catalonia, Andalusia, Canary Islands, and Balearic Islands are the most popular destinations. Accommodation accounts for 21% of tourists' budgets, followed by transport at 19%, and dining at 16%. Cultural and leisure activities make up 11% of expenses, rising to 14% among Chinese tourists, who also spend 16% on shopping. Digital payments will be widely used for cultural bookings (69%), restaurants (74%), and small shops (66%), compared to 79% in large retail outlets.

📌 Spanish travel agencies are facing profitability concerns due to high prices affecting demand; despite a strong first half, the last two months have seen a decline. The Spanish Confederation of Travel Agencies (CEAV) reports a 9.8% annual growth in May and an 11.3% year-to-date increase, despite the slowed growth from early sales campaigns. Agencies experienced a 1.5% drop in July, adding to a 3% decrease in June, while hotels and restaurants have grown, according to Caixabank's Consumption Monitor.

🛈 Un especialista ha detectado incongruencias en la nueva plataforma online para el registro de viajeros, afectando tanto al website como al API móvil, previendo problemas en su lanzamiento en octubre. El Ministerio del Interior registrará la identidad y movimientos de clientes de agencias de viajes. Tanto hoteleros de CEHAT como agencias advierten del caos en la implementación. El CEO de Beroni señala la falta de información y sugiere webinars para formar a técnicos. La plataforma presenta fallos técnicos y acepta datos falsos o incompletos.

🚩 In Mallorca, protests against tourism led to only slight drops in tourism indices, with normalcy resuming in nine days after the May 25th protest and five days following the June 16th protest. Mabrian's GTPI for Mallorca remains above 80 points, indicating strong tourist perception and resilience. Travelgate reported a 15-20% increase in bookings to the Balearic Islands from July 22nd to August 12th. Son Sant Joan Airport saw a 5% year-over-year increase in passengers, reaching 4.6 million in July.

💸 FTI Group customers targeted by phishing SMS fraud posed as communications from the German rescue fund DRSF. The DRSF began the largest refund process on August 8 with "more than 215,000 canceled tourist packages." Fraud attempts coincide with DRSF contacting customers for refunds, involving millions in three digits. Refunds processing requires three documents from consumers and will take several weeks, potentially until September. This follows FTI Touristik's bankruptcy and DRSF's creation post-Thomas Cook collapse in 2019.