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Out of the Crisis – Episode 2: The 80 billion treasure

The corona pandemic has massively changed consumption habits. Online trading has benefited greatly from this. However, amazon & Co were by no means able to absorbe the entire purchasing power in 2020. Many consumer decisions, especially for more expensive products and services, have been postponed due to the uncertain future prospects. Despite real income losses, many households have more money after the crisis than they did before the crisis. How can you benefit from it?

The Eldorado is in Germany 

When faced with uncertain times, consumers save instead of consuming. In the EU, the savings rate doubled in 2020. In Germany it rose by 5% to 16.6% of disposable income. The highest savings rates can be found in Baden-Württemberg, Bavaria, Hessen, Hamburg and Rhineland-Palatinate. 

In addition, it was often not possible to spend money in the past year. This particularly affected the culture, leisure and tourism sectors. Due to the lockdown and the associated uncertainty, private consumer spending fell by 1.4% in the first quarter of 2020, by 13% in the second and by 3.7% in the third quarter compared to the previous year. (Source destatis.de) Even if real wages fell last year, it can be assumed that around 80 billion euros will be available for private consumption in 2021 and 2022. Accordingly, the Kiel Institute for the World Economy (IfW) is assuming economic growth for Germany of 3.1% in 2021 and 4.5% in 2022. 

How can the tourism industry raise this 80 billion treasure? 

In it’s entirety, probably not at all, as the competition with other industries is simply too big. Especially since the tourism sector emerged from the crisis year badly hit and marketing budgets are significantly lower than in other industries. How they can nonetheless assert themselves ,we showcase here: 

  • Be first 
    For most people, the past year has been one of hardship. In 2021 we will have to make do without many things, at least in the first half of the year. The longer this phase lasts, the greater our desire for reward for having been disciplined throughout the limitations imposed. With intelligent digital marketing, the tourism sector has great chances to land at the top of the relevant set of rewards in people’s minds, even with a small budget. 
     
  • Building up trust 
    Other industries have also gone through massive crises in the past. In the banking crisis over a decade ago, a car company offered its potential buyers that they could return their vehicle if they lost their jobs due to the crisis. The manufacturer has actively addressed the concerns of consumers and has strengthened trust in its brand. This approach can lead also to more bookings, especially at the beginning of the year. 
     
  • Offer resonance spaces 
    What seemed impossible for a long time should now be made-up for. More than ever, people are looking for a special experience. The funds to treat themselves is there. With the increased financial resources due to saving or not consuming in 2020, the demands also grow. After being isolated for a long time in the home office, many feel the need for resonance (link to the previous article) – they want to feel vividly connected to one another. Destinations and service providers should set up these resonance spaces. 

Conclusion for your tourism marketing in 2021: Check your digital strategy. Those who quickly set the right course can benefit from the “consumption backlog” of the past year. It is important to build trust and to fulfill the desire for experiences that leave a lasting impression. You can efficiently channel the demand for your offer via digital micro-campaigns. 

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