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November 25, 2020

Familiarity a key factor for attracting German tourists

By GlobalData Technology

According to GlobalData’s Recovery Consumer Survey (7th-11th October), “How familiar/trust-worthy/risk-free the product/service feels” is the most influential factor for German tourists when planning a trip, with 50% saying it ‘always’ or ‘often’ influences their product or service choice.

This factor could become increasingly influential in the coming months as the valuable German source market looks for some sense of familiarity. Due to this, countries sharing a similar culture to Germany such as the Netherlands, Austria and Switzerland will be at a distinct advantage when compared with other destinations.

Germany is the second biggest source market in the world in terms of international departures, so having the ability to attract German visitors will act as an enormous boost for a destination’s economic recovery. It will be unsurprising to see countries such as Austria and Switzerland focusing a large proportion of their marketing efforts on the German source market.

According to GlobalData’s Survey, 40% of German respondents said they will undertake banking transactions online, or switch to an online-only bank. These figures highlight increasing demand for digitization amongst the German market.

This trend is likely to grow even further in popularity as German travelers will want to reduce the number of physical interactions that they come into contact with during a domestic or international trip.

By reducing physical interactions, tourism companies can reduce the chances of contributing to a Covid-19 outbreak, which would be catastrophic for image and revenues. Companies have already begun investing in this kind of technology and it appears that rather than being a unique selling point for a business, digitization will be something that is expected as an industry standard.

A large proportion of German tourists will be inclined to choose smaller businesses over traditional tourism companies. In GlobalData’s survey some 43% of German respondents said supporting small/local businesses is more important to them now than before the pandemic.

This will be an enormous boost for smaller companies that do not have the cash reserves of their larger counterparts and will struggle to survive unless they see a strong recovery in the sector. Large-scale companies can even tap in to this trend which has the potential to create a negative impact for them. For example, major tour operators could partner with and advertise smaller, boutique hotels, creating benefits for all involved.

Attracting tourists post-Covid is going to be a challenge for any business. However, the above research highlights that there are a number of ways that companies can increase their chances of attracting the powerful German source market.