Romania's local tourism market, traditionally dominated by Romanian entrepreneurs, is becoming increasingly attractive to major international travel groups. This interest is fueled by the growing appetite of Romanians for vacations abroad, leading to a significant increase in spending on international travel. In 2023, Romanians spent 8.4 billion euros on vacations abroad, up nearly 20% from the previous year.
Foreign Travel Groups Entering Romania
Several international travel groups have recently entered the Romanian market to cater to the growing demand for vacations abroad. These groups are not primarily focused on bringing foreign tourists to Romania but on sending Romanian tourists to destinations outside the country. The market is heavily geared towards outbound tourism, with few operators specializing in inbound tourism.
Key entrants include:
RTK: The newest player, RTK Romania, is a subsidiary of the international RTK group, which has central offices in Luxembourg and Germany. RTK operates on a business-to-business model, connecting local travel agencies with tour operators within its network, but does not directly manage travel operations.
Join Up: This Ukrainian group entered the Romanian market two years ago. It also operates on a business-to-business model, providing travel packages to other agencies rather than directly to consumers. Join Up includes Sky Up Airlines, which offers charter flights for the travel agency. The group operates across several markets, including Ukraine, Moldova, Kazakhstan, Estonia, Latvia, Lithuania, and Romania.
Coral Travel: Part of the Turkish OTI group, Coral Travel has an extensive presence, with over 50 offices worldwide. Like other international groups, Coral Travel focuses on sending Romanian tourists abroad, leveraging its broad network and strong negotiating power with airlines and hotels.
Competitive Advantages and Market Dynamics
International groups bring a distinct competitive edge through their size and negotiating power, allowing them to offer competitively priced travel packages. These groups can secure deals with hotels and airlines, ensuring high standards at better prices, which local operators might struggle to match.
However, local travel agencies have established strong brands and a significant market presence. For instance, DerTour, part of the German Der Touristik group, has made substantial inroads into the Romanian market by acquiring the travel operations of the Eurolines group. This move has helped DerTour become one of the top travel agencies in Romania by sales volume.
Challenges for Foreign Entrants
Not all foreign ventures in Romania have been successful. For example, the German Lidl group launched an online travel store, Lidl Tour, in Romania, which ceased operations in 2021 amid the pandemic. Despite offering a wide range of travel packages, including local and international destinations, the platform could not sustain itself in the competitive local market.
Conclusion
The Romanian travel market, with annual business of around 1 billion euros, remains largely entrepreneurial. However, the increasing spending by Romanians on international travel presents a lucrative opportunity for international travel groups. As these groups continue to enter the market, they bring increased competition, potentially benefiting consumers with better deals and a wider range of travel options. Local agencies, however, will need to leverage their strong brand presence and local knowledge to stay competitive.
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