German travel agencies between stable income and rising costs
The business of travel agencies in Germany remains relatively stable, but financial pressures are becoming increasingly pronounced. According to Travel Agency Barometer 2025, which was published by DRV Based on the results from 2024, the sector is managing to maintain revenue, but with significantly reduced profitability.
The number of clients is decreasing, while the average value of sold packages is increasing. Employee productivity remains at a solid level, but the rise in costs – primarily labour and office space – is increasingly burdening businesses, especially smaller agencies.
Following the pandemic, the German market has seen a smaller number of active travel agencies, but with no significant impact on total turnover. Around 70 % agencies generated a mediated turnover of between €1.3 and €3.3 million in 2024. Classic tourist products still dominate, while larger agencies are increasingly developing airline services and individual travel to differentiate themselves from online competition.
The sector's productivity remains one of the few positive constants. According to the DRV, one full-time employee generates around €900,000 in turnover on average, confirming that business volume is concentrating on a smaller number of more efficient entities.
The revenue structure is gradually changing. Although commissions from traditional tourist products still make up the bulk of earnings, service fees are playing an increasingly important role. Service fees account for around 10% of total revenue on average, while at large agencies this share can rise to a quarter. Despite this, revenue growth is not sufficient to offset increased costs, which is why the operating result in 2024 is weaker than before.
An additional challenge for agencies is the increasingly pronounced cashback model. During 2025, there are more and more lost bookings due to the refunds offered by banks and online platforms, which further increases the pressure on prices and margins.
Specialised tourism businesses demonstrate greater resilience thanks to close relationships with clients. Their average turnover is around €250,000, and their operations rely almost entirely on classic tourism products. Regional differences remain significant: agencies in areas with lower labour and rental costs achieve better results, while those in major cities are under considerably more pressure.
Overall, German travel agency market shows resilience in revenue, but also clear signs of structural challenges. In the period ahead, key success factors will be cost control, strengthening of additional revenue streams and differentiation of the offering compared to online channels.
