Tui attributes travel cost increase to weak pound

A weaker pound has increased the cost of travel, especially for UK-based holidaymakers, says Friedrich Joussen, chief executive of Europe’s largest tour operator Tui.

Even though demand from the UK is “difficult,” Joussen said people get used to price adjustments and decide to travel nonetheless.

Speaking to Bloomberg in Berlin, he said: “Every year for more than ten years travel has increased worldwide except for one years which was 2009.

“We also expect this year and next year that travel will go up.”

Joussen added that Tui was sticking to its guidance of 10% annual earnings [EBITA] growth for the next financial year.

“Many things happen but we stay with our guidance,” he added.

He pointed to a return in travel to the terrorism-hit countries of Egypt and Turkey.

“That is very encouraging because these are big destinations, Turkey in summer and Egypt in winter – very important destinations for us.”

He added: “Terrorism and uncertainty is maybe a part of life. Of course security is always first and we have the travel advisories of the respective countries but right now we are seeing strong uptake in demand for Turkey and Egypt again, so that is a very good sign.

“It is also very good for the countries because it stablises economies and also the environment of the people who live in these countries.”

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