German tour operators and travel companies face the currently shrinking market individually.

While some, including the national carrier Lufthansa, the luxury cruise company Hapag-Lloyd and the gigantic TUI (Touristik Union International), Europe's number 1 operator, did not even join ITB Berlin, others try to pass the pressure on to their partners, Thomas Cook wants hoteliers to become cheaper for instance.

"It will get tougher this year and next year", CEO Manny Fontenla-Novoa said to a German special interest magazine. As a consequence, hotels especially based in the Mediterranean should lower their prices, Fontenla-Novoa suggested. He added that the markets might recover in 2010 or 2011 if hoteliers realised they could not raise prices year on year.

TUI has announced plans to cut costs by making its German employees work reduced hours. Europe's largest tourism company is about to debate with its workers council about the proposed reductions, which it views as a preferable alternative to making staff redundant. However some Newspapers have already reported that the saving measures will start in May 2009 and will affect at least 1600 employees.

Volker Boettcher, TUI Germany Managing Director said: "In the current situation, with lower demand in process, we must do everything to adjust our costs to current business trends". 

The industry is currently offering discount prices glossed over as "special offers". This includes the extension of early booking discounts from the end of January into March and even April.  However, these steps only influence the summer season according to Boettcher.

Meanwhile, operators are trying to cut back their capacities to make sure there will be no "cancellation run".  Market leader TUI, for example got rid of 14% of its air and hotel capacity. The company's own air carrier TUIfly is about to cancel 30 flights per week, insiders say.

Even Thomas Cook has disengaged itself from 10%  of its flights.