Tui’s UK business delivered £6 million of efficiency savings towards its business improvement programme in the year.
Tui described winter 2013/14 trading as being is in line with expectations with 69% of the overall mainstream winter programme sold.
“As a result of the unrest in Egypt we have actively remixed the programme and reduced our capacity to Egypt which now accounts for less than 5% of the total programme.” Tui said.
“All markets now have their Egypt programmes back on sale, however, demand is lower than last year.”
Overall mainstream bookings excluding Egypt are down by 4%, with average selling prices up 5%.
UK winter mainstream sales are up by 2%.
The company has sold about 13% of its summer 2014 mainstream programme with strong demand for unique holidays.
“We currently expect capacity for our summer 2014 programme to be in line with last year, although we have the flexibility in our model to make strategic capacity changes on select high-margin opportunities,” Tui said.
“Our restructured Specialist & Activity business has had a good start to the year, whilst our accommodation Wholesaler continues to see double-digit growth, driven by Asia and Latin America.”
Looking forward, Tui said: “At this stage, we continue to expect to hold our winter loss and deliver a H1 [first half] result broadly in line with last year, excluding the timing of Easter which falls in the second half of the year.
“Tui Travel is structurally well positioned with a robust business model that gives us a long term competitive advantage.
“The business continues to deliver sustainable growth through our unique holiday experiences, increasingly distributed online, whilst leveraging its scale as one organisation.
“This in turn, will drive further value for both our customers and shareholders.
“Building on this year’s outperformance where we have achieved a 13% underlying operating profit growth, we remain confident that we will deliver consistently on our five year annualised growth target of between 7% to 10% underlying operating profit growth at constant currency.”