Tui AG is considering expanding its hotels and cruise operations as it reported bring on track to meet its targets for the next two years.
The group is considering expanding Tui Cruises to offer holidays for UK customers, where Tui Travel brand Thomson Cruises already operates, although no decision had yet been taken.
The German company, which owns a 55% stake in Europe’s largest travel group Tui Travel, reported a smaller than expected second-quarter loss of €205.1 million, Reuters reported
It is undergoing restructuring in a bid to reach underlying profit of €1 billion (£833 million) in its 2014/15 fiscal year.
Tui AG said it expected a turnaround in its cruise operations this year, while profitability in its hotel operations would be up.
In hotels, the company said the RIU Group’s return on invested capital was due to increase beyond 12%, while its Robinson hotels would see the figure rise to more than 9% this year from a previous 6%.
It also plans to expand the number of Robinson club resorts to around 40 from 24 in the coming years.
“Against the background of the improved business performance of the sectors, we are very confident to fully reach our earnings targets for the full year,” chief executive Friedrich Joussen said.
Tui AG expects sales to rise between 2% and 4% in its 2013/14 financial year and underlying earnings (EBITA) to grow by between 6% and 12%.