Day 2 of ITB Berlin: Optimism and Growth in the Global Travel Industry Unveiled

Wednesday, March 6, 2024

Day 2 of ITB Berlin 2024 shines with bustling crowds, exceptional business opportunities, and a network of contented attendees, alongside top speakers sharing insights.

Crowded halls, excellent business and satisfied participants – ITB Berlin 2024 once again provides a unique experience for the global travel industry on day two. At the ITB Berlin Convention leading international speakers from the industry provide information on the latest trends, discuss strategies and share their expertise. Media representatives and bloggers can find all the latest news on ITB Berlin and the ITB Berlin Convention for their coverage of the event here.

Positive mood and encouraging outlook for the ITB Buyers Circle
ITB Berlin and Dr. Fried & Partner reveal some fascinating findings from the Global Travel Buyer Index (GTBI)
The ITB Buyers Circle stands as a pivotal element at the forefront of the premier global travel trade exhibition. Each year, it features a select group of around 1,000 buyers, chosen based on the robustness of their procurement volumes. This selection criterion has sparked heightened interest in the recent research outcomes from ITB Berlin, working in tandem with Munich’s consultancy, Dr. Fried & Partner.

The initial phase of the Global Travel Buyer Index examined the timeframe of December 2023, while the subsequent phase took place in February of the current year. The survey included several hundred participants, representing a considerable segment of this year’s Buyers Circle. The findings offer intriguing insights into the Circle’s demographic and the prevailing economic sentiment.

The researchers aimed to identify the primary markets where Circle members were actively purchasing. Nearly half indicated Europe as their focus area, with Germany alone making up more than a quarter. About 7% of the responses were attributed to Asia, and North America was mentioned by around 5%.

When inquired about the types of purchases they were making, participants could choose multiple categories. Hotels emerged as the predominant choice for about 81% of respondents. Activities & Events and DMC Services each drew 50%, followed closely by Transfers. Flights were noted by one-third of participants, with Cruises chosen by 27 buyers, and Car Rental services by 17%.

In terms of the current economic climate, the ITB Buyers Circle members expressed a positive outlook. A significant majority reported that their order volume over the past six months surpassed that of the previous year. This positive trend showed a slight dip between the first and second survey phases. Regarding definite purchase orders, about three-quarters noted improvements, while 20% saw no change. The survey also delved into the costs associated with securing orders, with over 80% indicating an increase from the year before.

Looking ahead, expectations for the next six months are optimistic, mirroring the sentiment for the past half-year. Roughly three-quarters of respondents anticipate an uptick in order volume compared to the previous year, with 20% expecting stability, and a minimal number foreseeing a downturn. A majority also predict a rise in definite purchases, with over three-quarters expecting expenditure to stay consistent in fulfilling orders.

The future is already here: GenAI is now an integral part of tourism
“Generative artificial intelligence can be of more assistance than real humans when customers are making their travel plans”, is the assertion by Glenn Fogel, CEO of Booking Holdings.
Speaking at ITB Berlin 2024 Glenn Fogel, CEO of Booking Holdings, revealed himself to be a major supporter of the use of artificial intelligence. At the Future Tracks section of the Convention he outlined his vision for the use of artificial intelligence in tourism under the heading of “Leadership, Innovation and the Future of Travel”: ”Back in the day my parents would go to a travel agency, where their interests were already known, and where they could be presented with suitable offers. If any problems occurred during the journey the travel agency was their point of contact.” And that is precisely what GenAI (generative artificial intelligence) can provide, but even more comprehensively because of the increased volume of data that is available.

GenAI provides customers with better advice that is available from humans. And when smart payment systems are used to facilitate travel he believes that he and his group of companies will be well prepared to face the future. The first step in this direction is provided by a travel planner on his booking.com platform, utilising artificial intelligence. As Fogel explained, the “AI Trip Planner” is based on the existing machine learning models of Booking.com, which are used on the platform to recommend destinations and accommodation options to millions of travellers each day, with the technological support provided by Open AI’s ChatGPT. As Glenn Fogel explains: “The latest developments in generative AI provide a boost to our work, which we have been carrying out for many years with machine learning, in order to continue to develop every aspect of the customer experience on our platform“.

Using this new tool travellers can not only raise general travel-related questions but also conduct more specific enquiries. According to Booking travellers can chat with the AI Trip Planner, describe their own particular requirements, ask questions and refine their searches in real time, and the tool can submit new suggestions within seconds. In this way the planner can, for example, offer information and inspiration about potential destination and accommodation options or produce routes for a particular city, country or regions. “I am convinced that vacationers only want one single platform for the entire trip. To achieve this we want to offer intelligent solutions, which also incorporate travel options, payment systems and much more besides.“

Hotels on the way to net zero
Panel discussion entitled ’Green transformation in the hotel industry’ at ITB Berlin provided insights on a scientific pilot project. Later Industry representatives discussed resource conservation
How can hotels help to reduce the industry’s carbon footprint? Experts examined this from a scientific and business angle at a panel discussion at ITB Berlin. To begin with, Prof. Sandra Rochnowski of Hochschule für Wirtschaft und Recht Berlin (HWR Berlin) presented a pilot study undertaken in collaboration with Hotel Relais & Châteaux Gut Steinbach in Bavaria. At the subsequent discussion round, leading hotel industry stakeholders presented examples of best practices.

Hotel Relais & Châteaux Gut Steinbach in Bavaria is surrounded by 35 hectares of woods. As well as being a place to relax it also stores CO2. In a pilot study, Sandra Rochnowski, professor of tourism economics and head of the Institute for Sustainability at HWR Berlin, also examined how forests could offset emissions.

After her keynote speech, Sandra Rochnowski moderated a panel discussion with industry representatives. Richard Seusing, authorised signatory for B&B Hotels, talked about explaining sustainability to guests in practical terms without lecturing them. Initiatives included minimising the amount of packaging at breakfast and “shower challenges”, using the least amount of water indicated as possible.

Many B&B Hotels now have charging points provided by Wirelane. Hakan Ardic, vice president, Hospitality & Mobility at Wirelane, emphasised the importance of using electric transport for sustainable tourism. One obstacle to expanding the charging infrastructure for EVs was confusion among landlords and property lessees over responsibilities, which delayed or even blocked approval in some cases. In that context, Yvonne Brabant, head of Asset Management Hospitality at Union Investment Real Estate, stressed how important it was for operators and landlords to show a united front.

However, even apparently minor product decisions can positively affect the environment. A hotel using Ada Cosmetics’ sustainable soaps displayed a certain mindset, said André Roeske, senior vice president, Sales at Ada Cosmetics. Darvin Nowak, CSR director at Greif Mietwäsche, emphasised how important suppliers were in the certification process for hotels. According to Andreas Westerburg, head of Hotel Development & Member Services at BWH Hotels Central Europe, in addition to having the right partners it was particularly important to raise awareness among employees for sustainability issues and spark their fascination for the subject.

Italy makes its tourist board a plc
Italy’s tourism industry wants to be more innovative and flexible – Greater emphasis on interaction between visitors and locals – Minister supports better wages for the catering industry.
ENIT celebrated the restructuring of its state-run tourist board at ITB Berlin with a symbolic opening ceremony. It has now become a public limited company (S.p.A.). Speaking in front of the press on Tuesday in Berlin, Tourism Minister Daniela Garnero Santanchè said the change was aimed at making the organisation more flexible and dynamic. The minister also publicly supported wage increases for catering industry staff in order to ensure greater respect for their work.

That was the only way to confront the skills shortage which was widespread in Italy too, Santanchè said. In addition to Italy’s well-known cultural and natural attractions and its USPs, encounters between visitors and locals were an important factor in creating a lasting bond with a destination. That was why more emphasis had to be put on training the tourism workforce.

ENIT president Alessandra Priante added that the new plc would be more flexible and pragmatic than in the past. It would be more decentralised and place a greater focus on supporting women. Despite women already accounting for 62 per cent in the industry that did not apply to management positions.

Priante assured those present that sustainability was no longer simply an add-on among the products on offer, and appealed to companies to put their principles into practice, as more and more holidaymakers wanted to see goals actually being achieved. The same applied to social responsibility, she added. All in all, quality had to have priority over rising tourist numbers. The new plc wanted to “ensure that quality remained high throughout“.

Santanchè was adamant that working evening and weekend hours had to be better paid. In general, these jobs needed to be more respected. “It is not just the food, but the service too that should stick in the minds of holidaymakers.” Workers also had to be given the opportunity to rise up the career ladder.

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