Distribution system

The travel distribution system in Germany features wholesalers as well as direct sellers. Bookings through traditional retail agencies remain strong for long haul travellers aged over 40 years. However, there has been an increase in long haul online bookings for airfares and accommodation, particularly those travelling for extended periods of time (e.g. Working Holiday Visa Makers).

Wholesalers/ Large agents

Commission level: 20% - 30%

• There are two major distribution channels for Australian product in the German market; wholesalers who sell their products through travel agencies (mainly chains, franchise systems, co-operations and independents) and direct sellers who use their own retail offices and partner agencies as their distribution channel.
• There are approximately 50 to 60 tour operators selling Australia in Germany, distributing product via wholesale and retail agencies. The largest major traditional wholesalers selling Australia include DER Touristik, FTI and TUI.
• On top of these, direct sellers are an important feature of the German market, producing a healthy share of the outbound traveller market to Australia. Key direct sellers include Best of Travel Group, Australia Unlimited, Travel Essence, Boomerang, Explorer Fernreisen and STA Travel. In addition, some retail agencies have specialized in selling Australia directly.

Retail Agents

Commission level: 8% - 13%

• In Germany, there are approx. 8,000 travel agencies which are divided into three categories: 
  • 1,800 classic travel agencies (selling both leisure and corporate/ business travel) with at least one tour operator and a Deutsche Bahn or IATA concession.
  • 5,700 tourist travel agencies (selling leisure travel) with at least two tour operator concessions.
  • 500 corporate travel agencies.
• Around 93% of all travel agencies are members of a cooperative or franchise systems.
• There are also approximately 8,000 mobile retailers who work for a travel agent chain or franchise agency and sell “door to door”.
• The top five travel agency chains and franchise agencies for leisure travel are DERTOUR/DERPART, TUI Travel Star, RTK Group, TSS Group and Lufthansa City Center.
• Tourism Australia, in conjunction with wholesale partners and tour operators, run several retail agent training workshops and roadshows throughout the year.

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia.
• There are over 1900 qualified Aussie Specialists in Germany. This includes 101 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program. 

Online

Commission level: 10% - 15%

• The number of online travel agencies (OTAs) is increasing, with online travel agencies (OTAs) in Germany including the eDreams Odigeo group (eDreams, Opodo, Go Voyages, Liligo, Travellink), Expedia, Booking.com, Tourlane,  Lastminute.com, Getyourguide, and Ebookers.com as well as OTA/consolidator with a huge online community.
• Germany is also seeing the emergence of influential online community forums such as Urlaubsguru, Urlaubspiraten, Travelzoo, etc.  

Inbound Tour Operators

Commission level: up to 30%

• Inbound Tour Operators (ITOs) form a key link in the distribution system between product and tour operator/ wholesalers.
• Some of the ITOs that work in the German market are AOT/ATS Pacific, Australia One, APTC, Terranova, Insight Australia Traveland, and Goway.

Trends

Distribution

• The total trip spend on leisure travel to Australia by Germans was AUD$872 million in 2023, growing by 146% compared to 2022, while the average trip spend was AUD$4,120, growing by 32% compared to 2022 (Source: IVS 2023).
• Consolidation in the retail sector is making it difficult for travel agencies to remain independent, as more medium and large-sized travel agencies are joining retail agency alliances.

Planning and purchasing travel

• German consumers see travel as a priority. They are high spending, frequent travellers and like to ensure their travel plans meet their expectations.
• German travellers are discerning and knowledgeable consumers. They are careful planners, seeking detailed information from a range of sources prior to departure.
• Whilst traditional in-person retail agencies have previously handled most of the outbound travel to Australia, German travellers are increasingly booking their own holidays.

Special interest

• Youth is an important segment in the market and specialist operators include AIFS, EF, Wayers and Travel Works as well as major youth tour operator STA Travel.
• Companies like backpacker.de focus directly and working holiday visa makers.
• Campervans and RVs are key for the German speaking markets. There are several dedicated companies/organizations that work purely in that niche, including Reisebine, Camperbörse, Alacampa, Camperdays etc. and many wholesalers in Germany produce a dedicated Camper brochure.
• Studiosus and Gebeco specialize in study and education trips, with the latter also focusing on youth/ more adventurous travellers with its GoExplore brand.
• Luxury is also an important sector and specialist operators include Art of Travel, Design Reisen, Windrose and Kugler Reisen. Most wholesalers also have luxury brands, e.g. Airtours (TUI), DERTOUR Deluxe.

Planning a visit to market

Top tips for sales calls

• The German trade has a strong focus on relationships, so loyalty and relationship management are crucial. It can take time to build relationships with German wholesalers to get listed in trade brochures.
• The German travel trade value punctuality and if you are going to be late, it is customary to call. Plan enough time for your journey.
• Avoid sales calls during brochure production time. The best time for sales calls is late March, after the Internationale Tourismus Börse (ITB) event, through until July.
• The key market centres to visit are Frankfurt, Munich, Düsseldorf, Hannover, and Hamburg, as well as Trier and Geldern.
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s 'Tourism Export Toolkit'.