German bus tourism industry squeezed by rising costs and Middle East conflict

The German bus tourism sector is grappling with unprecedented challenges, caught between escalating operational costs and a slump in bookings. Benedikt Esser, president of the International Association of Bus and Coach Operators (RDA), highlighted the industry's precarious position, with rising fuel prices directly impacting profitability. In response, a significant portion of operators—around 25%—are now seeking cheaper fuel options abroad to manage expenses. The RDA is actively lobbying for the reintroduction of government support measures, specifically calling for an energy flat rate to cushion the blow of fuel price hikes and ensure the affordability of coach tours for customers. Many companies are already implementing surcharges, with about one-third of organizers introducing fuel surcharges and another third contemplating similar moves. While passengers have largely shown understanding, the capacity for further price increases is limited, especially given that coach tours are planned and sold well in advance, making it difficult to adjust to sudden cost fluctuations. The industry argues for a fairer competitive landscape, pointing out that rail and air transport benefit from numerous tax reliefs, while bus travel, despite its environmental advantages, faces higher costs. This disparity, they contend, requires urgent government intervention to align transport policy with sustainable mobility goals.

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As indicated by the president of the International Association of Bus and Coach Operators (RDA) Benedikt Esser, coach companies find themselves in a situation of double pressure - rising costs and weakening sales.