Company

Business Report

Management report

Letter from the Management Board

2016 was another very challenging year for tourism, characterised by turbulent and in some cases tragic developments. Terror attacks in Europe, migration flows due to wars in the Near East, and in particular the turbulent events in Turkey have led to wide scale uncertainty and a reduction in the desire to travel.

After 2015, therefore, 2016 has been an even more difficult year for outbound tourism. In particular, the developments in Turkey, Tunisia and Egypt – popular summer holiday destinations for Austrians – gave rise to sharp reductions. Operators responded by diverting holiday flows to other destinations. However, it was not possible to fully compensate for the reduction in the figures for Turkey. Per the year end, a slight recovery in booking figures was discernible.

The figures for inbound tourism were significantly better, with an increase in arrivals and overnight stays. This segment achieved strong growth in the first six months, followed by stable development in the second half of the year. The Austrian hotel industry recorded good growth overall in the summer, and developments towards the end of the year indicate the likelihood of a good winter season.

In 2016 the business travel market was affected by the continuingly weak economic situation in Europe, with figures much the same as in 2015.

The difficult market conditions in the main outbound segment, and the reduced quota and therefore lower payment of premiums from the Slovakia business, were the main factors in Europäische Reiseversicherung seeing a slight fall in premiums. By contrast, it is pleasing that good developments are reported from all strategically important business fields besides outbound tourism. In addition the company was generally able to retain all important sales partners in addition to extending partnerships and in some cases even acquiring new partners.

In South Tyrol and Slovenia also, our activities were successfully continued in 2016, with good growth being achieved in South Tyrol in particular. Our presence (through participations) in the leading travel insurance companies in the Czech Republic and Hungary continued unchanged. Our activities within the ETIG (European Travel Insurance Group) have developed in a positive manner.

It is also pleasing that we have again received first-class testimonials in customer satisfaction surveys, both from end customers and from sales partners, providing confirmation that we should continue to place special value on the needs of our customers and our brokers. Quality of service, combined with the empathy of our employees and our efficient management, continue to be clearly at the centre of all that we do. The range of services we provide for our customers and brokerage partners is optimally complemented with consultancy, training and additional services provided by our subsidiaries TTC – Training Center and Care Consult.

With continuity within the company, and a strong focus on the qualifications of our staff, we have been able to expand our long established position as Austria’s leading travel insurance company, and to make a valuable contribution to the general wellbeing of society through the provision of optimal protection for travellers.

We expressly thank our sales and service partners for their outstanding cooperation, which has enabled us to make a significant contribution to the provision of greater security for travellers. Our special thanks go to our sister company Europ Assistance, which through its extensive network and the high quality work carried out by its employees has made it possible to provide fast and efficient assistance to our customers throughout the world.

Our very special thanks go to our employees for the extraordinary commitment they have shown in the service of our sales partners and policyholders, as a result of which Europäische Reiseversicherung AG has for the last 110 years (the company was founded on 9 May 1907) been able to promote the development of the company on a lasting basis, and actively to make life better for travellers.

 Vienna, 27 February 2017

The Management Board
Mag. Wolfgang Lackner m.p., Chairman
Mag. (FH) Andreas Sturmlechner m.p.

Outlook

Following a continuingly difficult situation in 2016, with a decrease in demand for holidays, the company expects to experience a “catch-up” effect in 2017 with a return to solid growth. However, this will depend on there being a reduction in crisis events and terrorist threats. An expected slight upturn in the overall economic trend could thus lead to stronger demand for holidays, which together with an increased awareness of risks will result in more insurance bookings.

In our jubilee year 2017 also, the needs of our customers and sales partners are at the centre of all our activities, the focus being on innovations in products and services, further optimised partner services, and increased interaction with our customers. A further essential task continues to be the opening up of new sales channels and the expansion of existing sales channels. We aim to be with our customers and partners when bookings are made, and to be present wherever customers are looking for and booking their travel arrangements.

In addition to our efforts and objectives on the market, we are also continuing to develop our internal processes and to optimise our operational procedures. We will also increasingly make use of technological developments. Generally speaking we are optimistic about 2017, in the belief that we will once again succeed in reinforcing our position as Austria’s leading travel insurance company and achieve a solid and sustainable result.

Vienna, 27 February 2017

The Management Board
Mag. Wolfgang Lackner m.p., Chairman
Mag. (FH) Andreas Sturmlechner m.p.

MEINE URLAUBERIA-App

All journeys and holidays on record - even offline without data roaming when abroad!

Direct call to operations centre with automatically generated emergency text message with GPS data.

Creditcard and mobile phone lock instructions, travel warning, checklists and more.

Business travellers - travel expenses via app, documents always available