SEMINARARBEIT

Seminar: Applied Marketing Projects

"Analysis and critical evaluation of the current and future impact of economic factors,

with special emphasis on consumer prices and income developments, on consumer

behavior in the German travel industry."

Applied Marketing Projects

Fachhochschule Trier

Studienrichtung: International Business

5. Fachsemester

Seminar Applied Marketing Projects

Table of content

I. INTRODUCTION 3

II. INFLUENCE OF ECONOMIC FACTORS ON THE GERMAN TRAVEL INDUSTRY 4

1. Demographic development in Germany 4

2. Consumer price index (CPI) 5

3. Income development 9

3.1. General development of disposable income 9

3.2. Categorization of consumer behavior in the travel industry 11

3.2.1. Spare Consumer 13

3.2.2. Master Consumer 15

4. Reorientation of tourist product design ­ Future trends 17

4.1. Nature of traveling 17

4.2. Travel time 18

4.3. Travel destinations 18

4.4. Senior tourism 19

III. CONCLUSION 20

IV. LIST OF REFERENCES 21

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Seminar Applied Marketing Projects

I. Introduction

The tourist branch highly depends on social and natural coherences. Today′s Mega

trends such as demographic change and urbanization influence tomorrow′s lifestyle.

For many individuals, travel and holidays are seen as the highlight of the year, as the

only chance to escape from the hectic and stressful everyday life.

According to a survey, Germans like best to spend their disposable income on travel

and holidays.1 This has served the travel industry as a huge advantage for many

years. However, the time where travel agents could remain in complacency is over.

The travel industry is experiencing major changes since a continuous decrease in the

people′s disposable income has led to a significant change in their consumer

behavior.

In this thesis, reasons that caused the change in the consumer behavior as well as

the impact of other economic factors on the German travel industry will be analyzed

and evaluated.

1 Cp. ACNielsen: All about your consumers ­ Deutsche geben ihr Geld am liebsten fuer Reisen und Urlaub aus,

Pressemitteilung, Frankfurt am Main, 07/02/2006

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Seminar Applied Marketing Projects

II. Influence of economic factors on the German travel industry

1. Demographic development in Germany

On a global view, the world population will continue to rise, especially in developing

nations. With a population that is growing faster than the economy, the per-capita

income will not grow, despite of economic progress. Especially Germany as an

industrialized nation will experience a significant demographic change: A steady

decline in the birth rate and a gradual increase in the life expectancy will lead to a

considerable shift in the age structure of the German population.

According to the 10th coordinated population forecast2, in 2001, 20.9 % of the

Germans were younger than 20 years and 24.1 % over 60 years old. In 2050, only

16.1 % will be younger than 20 and 36.7 % will be aged 60 and above.

Figure 1:

Age structure in Germany3

However, Germany is not the only country that will experience a demographic

change. The majority of the European nations show strong signs of this characteristic

2 Cp. Mortler, M.: Ausschuss fuer Tourismus, Kurzprotokoll ­ Deutscher Bundestag, Protokoll Nr. 16/20, 2006/10,

P. 5

3 Cp. Statistisches Bundesamt

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Seminar Applied Marketing Projects

evolution. This has to be considered as 75% of the foreign visitors in Germany are

European.4

The continuing aging of the society will shift the demand in the tourist industry. It is

inevitable to adjust the offer to the new market. Otherwise the new needs cannot be

satisfied. An aging society implies an older target group. However, there is not only

one target group of "seniors" but a multitude of complex segments. Each segment is

characterized by different travel behaviors, travel destinations and motives, ect.

2. Consumer price index (CPI)

According to the German Federal Statistic Office, the consumer prices in Germany

rose 1.9% from July 2006 to July 2007. The major reasons were the price increase of

petroleum as well as the price increase of all-inclusive tours (+16.3%) and

accommodation services (+ 9.0%; including the rental for holiday flats: + 30.2%).5

Figure 2:

Consumer Prices in Germany

4 Cp. Mortler, M.: Ausschuss fuer Tourismus, Kurzprotokoll ­ Deutscher Bundestag, Protokoll Nr. 16/20, 2006/10,

P. 6

5 Cp. Statistisches Bundesamt, 16/08/2007

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