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No wonder there are mixed
signals on demand. Heathrow reported
“economic uncertainty across North America” made the market “more challenging” last week, amid “signs of softness on business-heavy routes”. Yet Carnival Corporation reported record second-quarter operating results for the three months to May “due to strength in close-in demand”. Iata air traffic data for May
showed global demand on a par with increased capacity at 5% up year on year. But director-general Willie Walsh noted: “North America reported a 0.5% [traffic] decline, led by the domestic market.” European carriers
increased capacity on international routes by almost 5% year on year in May, but demand rose only 4.1% – a shortfall likely to be reflected in fares if it persists. Worldwide, only Asia Pacific and Africa saw air traffic demand increase ahead of capacity in the month. Attention is now likely to
switch immediately back to the US and Trump’s July 9 deadline for US trading partners to make trade deals or face higher tariffs. Uncertainty over the
outcomes has seen the dollar suffer its biggest half-year fall in value against other major currencies since 1973. The pound was up 12% since January at $1.37 on Monday – surely positive for sales to the US, although analyst Tourism Economics has predicted an 8.7% inbound decline this year.
Tui agrees equity swap to take stake in Swiss operator
The Tui Group acquired a 20% stake in Swiss tour operator Bentour Reisen last week in an equity swap giving Bentour a 20% share of Tui subsidiary Nazar Nordic, based in Sweden. Tui noted the companies
“operate in similar destinations but
serve different customer and source markets. Both offer high-quality holidays with a focus on all-inclusive trips to Turkey and Greece. “Nazar is an all-inclusive travel
specialist in northern Europe. Bentour Reisen is a family-run Swiss tour operator for German- speaking countries.” Zurich-based Bentour Reisen
operates in Switzerland, Germany and Austria. Nazar’s source markets are Sweden, Denmark and Finland. The transaction remains subject to regulatory approval but appears
unlikely to attract substantial interest from antitrust authorities given there is no change of control. Bentour Reisen is owned by
founders Kadir and Deniz Ugur, and Turkish hotel chain Delphin Hotels. On completion of the deal, the Ugur family will own 55%, Delphin Hotels 25% and Tui 20%.
Ectaa welcomes revision of proposed PTD changes
Ian Taylor
The European Travel Agents’ and Tour Operators’ Association (Ectaa) welcomed a revision of proposed changes to the EU Package Travel Directive (PTD) by a European Parliament committee last week but warned: “Key concerns remain.” Ectaa hailed “several simplifications
and improvements”, offering “warm support” for deletion of a proposal for “one-size-fits-all restrictions on prepayments by consumers” which had alarmed the trade. But it noted the revised proposal
“allows member states to set national limitations, potentially leading to a patchwork of rules across the EU”. It called for “a harmonised
framework” and warned: “Requiring insolvency protection to reflect the highest level of prepayments – even in off-peak periods – would impose unnecessary burdens [which] translate into higher prices for consumers.” The association, of which Abta remains an affiliate, welcomed
46 3 JULY 2025
‘trilogue’ negotiations between the Commission, the EU Council of Ministers and MEPs. Separately, Ectaa warned a vote by
Air passenger rights could be extended
deletion of a proposal to extend consumer rights to cancel a package to include ‘unavoidable and extraordinary’ circumstances in their “place of residence”. Ectaa also welcomed the removal
of Linked Travel Arrangements from the revised directive. However, it warned new rules proposed for ‘packages’ booked online not at once but in stages within 24 hours “may replicate the same legal uncertainties and practical challenges, blurring the distinction between a package and standalone travel service”. The proposals must still be put to a Parliamentary vote and go through
the European Parliament’s Transport Committee in favour of adding a consumer right to the refund of ‘intermediation fees’ when due a refund for a cancelled flight “puts travel agents at risk”. The EC has proposed extending
existing air passenger rights under EU Regulation 261 to clarify the refunds process when tickets are sold through intermediaries and add new rights for ‘multimodal’ journeys involving more than one form of transport. Ectaa noted the Transport
Committee had “gone beyond the EC proposals”, warning a consumer right to refund of intermediation fees “threatens the viability of travel agents”. It said agents “get no or minimal commissions from air and rail operators [and] must charge an intermediation fee to sustain their services”. However, Brussels-based Airlines for Europe welcomed the proposal.
travelweekly.co.uk
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