Why budget holidays are so popular

Result

Summertime is travelling time. Many people want to get away from it all in the coming weeks, discover new countries, relax physically and refresh their minds. But what is a natural part of the year for many, poses major financial challenges for others. On average, German citizens spend just over 1,500 euros per person on their main holiday, which means more than 6,000 euros for a family of four. However, this sum is not affordable for many households. For example, 22 per cent of the population are willing or able to spend a maximum of 500 euros per person on their main holiday.

Reasons

Income is the decisive factor when it comes to holiday budgets. People on low incomes have to prioritise their spending - especially in times of high inflation and rising prices - and therefore have less leeway for travel. In addition to the already limited financial resources, low-income earners often face additional challenges - such as insecure employment or a lack of access to holiday pay. This is made even more difficult by the low number of affordable travel offers. For example, only four per cent of all hotels in Germany are in the 1 and 2-star category. In contrast, 94 per cent are in the 3 and 4 star sector. The ratio is not much different for foreign offers either. In a comparison over time, the number of accommodations in the lower star segments has also decreased, while there are more and more hotels in the 4 and 5 star range.

Forecast

In the coming years, the tourism industry should increasingly cater to the needs of low-income earners. A central focus could be on the development and promotion of offers in the lower star range. The potential for companies here is high, as the desire for holidays and relaxation is also high among low earners. It doesn't always have to be a minibar, pool area or 24-hour reception, but rather solid quality offers. Digitalisation and automation will help here, as they take over certain service processes and thus reduce costs for operators.

These and other targeted measures (e.g. no single room supplement, tax incentives, image campaigns) will reach a wider audience in future, which will ultimately improve social participation and quality of life for all.