The Tourism Sales Climate Index in May 2020

Despite initial easing of the corona measures, the current mood in travel distribution remains highly negative. As in the last two months, the Sales Climate Index is still at an all-time low. Dr. Fried & Partner has been recording the mood at the counter on a monthly basis since 2005.

Current situation

This month again, none of the respondents rated the current situation in the sale of travel services as good. At 99.2%, almost all travel agencies surveyed consider the current business situation to be bad. This means that there is not much change compared to April 2020, when 100% of travel agencies assessed the situation as bad. Only 0.8% of those surveyed assess the current situation as satisfactory. This figure was 0.0% in the previous month.

Sales of travel services have collapsed in the last 2-3 months compared to the previous year. In May, it is now apparent that 98.4% of the participating travel agencies have seen their sales of travel services decline. In the previous month this figure was 95.0%. At none of the travel agencies surveyed did sales of travel services increase compared to the previous year. This was already the case last month. 1.6% of the survey participants rate sales in the last 2-3 months as unchanged compared to the previous year (previous month 5.0%).

The continuing travel restrictions due to border closures, travel warnings and contact restrictions continue to lead to massive losses in sales of travel services.

Future situation

With regard to the future situation, optimism among the travel agencies surveyed remains strongly dampened. Just 1.6% of those surveyed expect demand for travel services to rise in the next 6 months. In April the result was 0.8%. Also 1.6% of the participants expect future demand to remain unchanged compared to the previous year. This figure was also 0.8% in April. Thus, almost all respondents (96.9%) assume that demand will decline in the next 6 months compared to the previous year. This figure was 98.3% in the previous month.

Regarding the future earnings situation, 0.8% of the respondents foresee an improvement (0.0% in the previous month). 0.0% of the participating travel agencies do not expect the earnings situation to change in the next 6 months. In April, 0.8% shared this view. Furthermore, almost all respondents (99.2%) assume that the earnings situation will deteriorate in the next 6 months. This assessment has not changed compared to the previous month.

Despite initial easing of measures against the spread of the corona virus, travel agencies thus remain pessimistic about the future situation.

Summary

The tourism industry is still almost at a standstill as a result of the pandemic. Whether and when tourism will get going again due to the corona loosening is still questionable. Uncertainties regarding the future are still predominant.

In May 2020, 127 travel agencies took part in the survey (previous month 120).