Summer 2023 is expected to be a busy summer for TUI Travel Group (headquartered in Germany), one of the largest travel groups in the world.
The group's report said that from April to June this year, more than 5.5 million tourists experienced TUI's services, up from 5.1 million visitors in the same period last year. The group's earnings before interest and tax (EBIT) increased to 169.4 million euros, compared to a loss of 27 million euros in the same period last year. This is good news for TUI, because in the period 2020-2021, this tourism group suffered record high losses and had to receive bailout from the German government to overcome the crisis.
| Signs of recovery in the tourism and aviation industries in the post-Covid-19 period have been recorded since last summer after a series of countries lifted their “lockdown” policies to control the pandemic. The surge in travel demand is a factor leading to congestion and chaos at European airports in the summer of 2022, in addition to other causes such as severe staff shortages and waves of worker strikes. |
The strong demand for travel and tourism in the summer also brings a clear sign of recovery for the aviation industry. German airline Lufthansa forecasts that it could reach a record profit of 2.6 billion euros by the end of 2023, and 2023 could be the best year in its 70-year history. British low-cost airline EasyJet has just announced figures showing that pre-tax profit in the third quarter of the 2023 fiscal year reached a record 203 million pounds.
In mid-June 2023, the International Air Transport Association (IATA) predicted that global air passenger traffic would surge in 2023 and return to near 2019 levels. According to IATA, economic uncertainty has not dampened travel activity, even as ticket prices rise due to rising fuel costs.
Signs of recovery in the tourism and aviation industries in the post-Covid-19 period have been recorded since last summer after a series of countries lifted their “lockdown” policies to control the pandemic. The surge in travel demand is a factor leading to congestion and chaos at European airports in the summer of 2022, in addition to other causes such as severe staff shortages and waves of worker strikes.
IATA has expressed confidence that airlines can weather this year's peak travel periods thanks to the lessons learned from the previous "summer of chaos".
Despite the bright outlook, the tourism industry faces a number of challenges, with climate change being a prominent issue. Extreme heat across Asia, Europe and the Americas has caused many passengers to change their travel habits.
In Greece, thousands of tourists were evacuated from the islands of Rhodes and Corfu due to the heatwave and wildfires. The country announced it would offer a free holiday to Rhodes in 2024 to tourists affected by the wildfires. Moody's said the heatwave could reduce the attractiveness of southern Europe to tourists, or at least reduce summer demand, with negative consequences for the economy.
Labor shortages are also a persistent problem for the tourism industry. The US Department of Transportation is working to recruit 1,800 more air traffic controllers by 2024. The World Travel and Tourism Council (WTTC) estimates that Japan’s tourism industry will need 5.6 million workers by 2023.
However, some experts say the massive hiring spree is a “double-edged sword,” as questions remain about the sustainability of the recovery in travel demand. Strikes are still occurring in several European countries, disrupting air travel.
Like other industries and professions, the tourism industry is facing many intertwined opportunities and challenges. The Covid-19 pandemic has created momentum for the tourism sector to transform towards sustainability, to be more resilient to crises, thereby contributing to the overall growth of the global economy.
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