Tui hails resilient model as late-booking trend cushions profit drop

The timing of when consumers make travel decisions is changing amid wars and geopolitical tensions, according to the boss of Tui Group.

 

However, Europe’s largest travel company is “holding its own” in what is “no ordinary year”.

 

Chief executive Sebastian Ebel made the comments as Tui reported a fall in quarterly profits as a direct result of the Iran war.

 

Passenger numbers fell by 3% to 9.9 million compared to the same period last year.

 

Underlying earnings for the third quarter stood at €235 million, down from €321 million in the same period last year, “impacted by the direct consequences of the war in Iran (Tui Cruises ships in the Emirates) amounting to €20 million.”

 

Overall pre-tax profit for the three months to June 30 fell 43% year on year to €153.4 million.

 

Tui’s northern region, covering the UK, Ireland and the Nordic countries, saw underlying profits [Ebit] reduce to €10 million from €45 million a year earlier.

 

The group’s result for the quarter prior to the summer peak was driven by demand for Tui’s differentiated products.

 

Summer 2026 business in the group’s markets and airline sector continued to be affected by the consequences of the war in Iran during the quarter.

 

“This is reflected in increased consumer caution and the ongoing trend towards later bookings,” the group noted.

 

Booked revenue currently stands down 6%, but the last four weeks have shown a “significant increase” of 7%, indicating a recovery in demand, Tui added.

 

“In the current summer season, short- and medium-haul destinations such as Greece and Spain – including the Balearic and Canary Islands – are the most popular destinations.

 

“In recent weeks, demand for destinations in the eastern Mediterranean has also picked up again.”

 

The company hailed its “resilient” business model despite the Middle East conflict and “short-term booking behaviour”.

 

Ebel said: “2026 is no ordinary year. Tui has held its own well in a difficult global environment. Our business model is proving to be resilient.

 

“Travel remains highly relevant to people’s lives, but the timing of travel decisions has shifted. Wars and geopolitical tensions, consumer caution, economic weakness and rising inflation in Europe’s core markets – all these factors have influenced consumer sentiment and the timing of purchasing decisions.

 

“Our integrated business model has stood the test in this environment. In particular, our portfolio of well-known own hotel and cruise brands embodies Tui’s proven promise of quality and service.

 

“Strong product brands, combined with our tour operators, travel agencies, our presence in destinations and the activities business at Tui Musement, will continue to form a solid foundation for success in the future.”

 

He added: “Tui’s figures clearly show that demand persists even during periods of geopolitical crisis – though it is becoming more short-term in nature.

 

“The last four weeks in particular show that booking behaviour is picking up again. People are travelling but are currently making their decisions at shorter notice.

 

“With a commercially focused airline, our new low-cost brand Sundeals in the UK, the new Tui Cruises InTUItion class ships, a full hotel pipeline for new openings and our ongoing transformation, Tui is very well positioned for the coming financial year.”

 

The company plans to provide an updated review of the summer and the booking situation for winter 2026-27 on September 22.