According to German media FVW, airlines find package tours an attractive product

26-02-24

The growing trend in the travel industry to offer complete packages to customers, beyond individual products or services, is an increasingly palpable reality. Package tour marketing, traditionally the domain of tour operators and travel agencies, now sees a broader spectrum of industry players, including airlines, cruise lines and rail operators, diving into the sale of integrated travel experiences. This focus on creating complete experiences reflects a significant shift in the way we understand tourism, seeking to offer the traveler a holistic solution that encompasses all aspects of their journey.

In this context, EasyJet Holidays has announced its entry into the German market, a decision notable for its choice to dispense with traditional travel agencies for its launch. This strategy underlines the evolution of the travel market, where companies are looking to establish direct contact with their customers, leveraging digital platforms and direct sales strategies to personalize their offers.

Airline interest in package tours is particularly strong in markets with a long tradition of such sales, such as Germany. This country has increasingly seen big-name airlines such as Etihad Holidays, easyJet Holidays and British Airways Holidays, as well as smaller operators such as Icelandic airline Play, enter into direct competition with the large tour operator conglomerates. This trend not only diversifies the market but also poses a challenge for traditional operators, who are forced to innovate and adapt to the new dynamics of the sector.

From an economic perspective, the package tour business represents an attractive opportunity for airlines, offering potentially higher profit margins compared to the traditional business of selling flights. According to Jens Bischof, CEO of Eurowings (part of the Lufthansa Group), while flight operations typically generate commercial margins of 4-6%, package tours can mean a considerable increase in these margins.

This move towards integrating services and creating complete travel experiences signals a shift in the travel industry's commercial strategy, with differentiation and personalization becoming key to capturing the attention and meeting the needs of the modern traveler.