TUI sees slump in profits for tourism

THE TUI Group claims to be “catching up” on
booking figures as it announces a slump in profits for its tourism division.

At today’s annual general meeting, the group’s tourism
division reported a fall in profits of €198 million to €332 million, compared
to last year’s €530 million.

However, the recovery in bookings is being led in the
UK with summer 2003 bookings now 9% down on last year in comparison to 16% down
during the Iraq war.

Chief executive Michael Frenzel said group summer
bookings were now 10.7% down compared to 15.2% down in May. Taking the winter
season into consideration, the bookings shortfall is 7.2%.

“We are catching up on the backlog, in some cases
with double-figure weekly growth rates. 
This positive trend will continue but we cannot rule out the possibility
that sales revenues for the tourism division will still remain behind those of
last year by a single figure percentage. Further certainty will come in the
next few weeks.”


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