International Travel Update: EU Opens to Vaccinated American Tourists
Operators to Prepare for International Travel Demand
Last week, the European Union announced its plans to reopen to more tourists. After more than a year of living under various restrictions due to Covid-19, travelers longing for a European getaway and operators hoping for long-haul, transatlantic demand may get their chance just in time for summer.
In 2020, the charter market saw a marked decline in international demand. In the third quarter, international travel accounted for just 3,108 Fly Louie Alliance flight legs, down 22.1% from the year prior. The decline was primarily due to restrictions by US authorities on incoming flights and restrictions against US citizens in popular travel destinations such as Europe.
This highly anticipated decision approved by Ambassadors from 27 EU countries would allow entry from an approved list of countries with low Covid-19 infection rates and fully vaccinated travelers with approved vaccines. While the US is not currently on the list of “safe” countries, fully vaccinated Americans are expected to be granted access and will no longer have to quarantine or be tested.
The implementation date is still unclear; however, officials are optimistic that the new rules will come into effect in June.
Summer Travel Outlook
After more than a year of low demand for travel due to health concerns, travel restrictions and financial stresses, Americans are ready to make this summer count. According to a recent Deloitte report, “Keen but Cautious,” summer travel intent is near pre-pandemic levels, and most travelers plan to spend at least as much as they did on their 2019 trips. Fly Louie Alliance operator members completed 355 percent more flights in the summer of 2019 as compared to the summer of 2020. Italy, France, and Spain were the three most popular countries flown to in the EU by Fly Louie Alliance member operators during the summer of 2019.
We expect to see many Americans looking for a much-needed break, seeking adventure and the opportunity to connect with friends and loved ones. Anecdotally, we see charter clients making plans and ready to spend—booking bucket list-type of trips to make up for experiences forgone last year.
According to that same Deloitte survey, one in four flyers will take an international flight. The allure of visiting an international destination remains, even as travelers look to mitigate health risks. This is great news for the travel industry and countries that are highly dependent on tourism. Easing restrictions is expected to create demand for operators—including first-time charter passengers—as cautious travelers look to avoid crowds at airports and seek flexibility and safety protocols.
It is important to note that while countries such as Italy, Greece, and Croatia are opening and eager for tourists, each may tweak the rules implemented by the EU for a more conservative approach. One example is requiring negative PCR tests or quarantines for certain travelers. These countries also have an “emergency brake” to limit travel from affected countries if circumstances change regarding the spread of the virus and variants.
Operator Preparation
While the EU has not yet confirmed the exact timing of its reopening, operators should be prepared to support their clients’ international travel needs as soon as next week.
As charter clients start traveling again, operator flexibility and adaptability will continue to be key. Passengers will likely seek increased flexibility and detailed attention to safety protocols.
In addition to pandemic-related preparations, and with the expected uptick in international demand, now is an ideal time to set up programs for operational efficiency, growth, and savings. Over 200 operators have already turned to the Fly Louie Alliance for such support.
VAT and fuel taxes, for example, comprise up to 27% of operator costs on international charter trips. In many cases, these taxes are fully recoverable. The challenge is navigating the nuances of country-specific regulations and deadlines. Operators in the Fly Louie Alliance have access to our newest offering, Global Tax Reclaim, powered by VAT IT. This program provides expert support and resources to expedite global tax recovery effectively and efficiently. With Global Tax Reclaim, operators can cut down on administrative time and maximize their tax refunds on international travel to over 117 countries.
The Fly Louie Alliance also offers programs such as Crew Travel, powered by HotelConnect, where Alliance members save up to 40% at 1.6 million hotels worldwide and manages logistics and reporting on the same platform used by some of the world’s largest airlines.
More details are expected to be released in the coming days and weeks to provide clarity, for non-essential travel in Europe. At Fly Louie, we are optimistic that not only will international travel resume, but charter demand will increase.
For more information on how Fly Louie can support you, please email Alliance@flylouie.com