Germany | Tourism industry risks losing older customers

• A message to the German tourism market to reassess the way it treats its traditional customers, said Guido Wiegand, Managing Director of Studiosus Reisen and member of the Board of Directors of FUR (Forschungsgemeinschaft Urlaub und Reisen), during the annual meeting of the TSS Group. He warned that an excessive focus on younger generations, such as Generation Z, poses serious risks for the future of the classic travel agency.

Although, as he admitted, it is a fact that fewer young people are booking trips through travel agencies today, this is not necessarily due to a change in preferences, but mainly to demographic transformation. “There are fewer young people, while the number of older people is constantly increasing. However, we are seeing that even among the most stable core of customers, the elderly, the balanced tourism sector is losing significant market shares,” he warned.

Rising costs and decreasing purchasing power – 750,000 fewer elderly travelers

In his speech, Wiegand referred to the financial pressure on German consumers, especially older ones. As he pointed out, the net disposable income of households over 60 has increased by just 6.5% in the last five years, while spending on package holidays has skyrocketed by 20%.

The result? Around 750,000 elderly people have stopped taking package holidays compared to the pre-pandemic era – a drop of around 21%. “And all this in a group that is expected to grow continuously in the coming years,” he pointed out meaningfully.

Discontent is growing – Call for better services and affordable prices

Wiegand focused on the growing dissatisfaction with prices. 43% of seniors now say they are annoyed by increases in holiday costs, compared to 32% last year. “We have a price problem in tourism,” he said, stressing that the many offers and coupons are proof of this trend.

He called on the tourism industry to adapt its services to the needs of older travelers, both in terms of flights and ground handling at airports. He spoke of insufficient transfer times, long queues at security checks, and “tiny seats” on planes.

He also referred to the challenge of digitalization: “Let’s not forget those who don’t even have a mobile phone. Yes, we must move towards digitalization as an industry, but without leaving behind those who currently form the backbone of our market,” he stressed.

A message from TSS: “All customers count.”

The CEO of TSS Group, Manuel Molina, also moved in the same vein, emphasizing that tourism operators and travel agencies must know and respect the needs of all their customers. “Many of our customers continue to travel traditionally. We must offer them the corresponding choices and experiences, as we do for Generation Z,” he said.

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