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Tui Group reports rise in summer bookings at higher prices

Tui’s summer programme from the UK is 90% sold for the season with bookings up 5% since May.

The UK is also the most advanced booked of the group’s major source markets for the coming winter at 32% sold.

The update came as Tui Group reported strong demand across all short and medium haul destinations, with Spain, Greece and Turkey most popular.

The rise was supported by higher volumes at improved prices and rates, with overall summer bookings up 6% and average prices rising by 3%.

“This once again underlines resilient customer demand and the popularity of our product portfolio,” Tui said.

Overall passenger numbers rose by 4% in the last quarter to 5.8 million with the average load factor nudging up 1% percentage point to 94%.

Europe’s largest tour operating company reconfirmed a projected 25% rise in annual profits from €977 million based on a record-breaking  performance in the third quarter of its financial year.

Revenues for the past three months rose by 9% year-on-year to €5.8 billion, resulting in a “significant improvement” in underlying profits year-on-year by €62.4 million to €231.9 million.

Tui’s northern region, including the UK and Ireland together with Sweden, Norway, Finland and Denmark, recorded a profit of €14 million against a loss of €1 million in the same period last year.

The group’s record third quarter revenue and eighth consecutive three month period with double digit underlying earnings growth was attributed on ongoing transformation of the business.

Tui saw strong demand for cruises in the quarter with profits up to €91 million from €64 million in the same period last year as average fares increased by 7%.

The group also responded swiftly to the insolvency of German rival FTI by added peak summer capacity in key destinations such as Turkey, Greece, the Balearic and Canary islands and Egypt.

Tui said: “We have a clear strategy to accelerate profitable growth by increasing the customer lifetime value, creating a business which is more agile, more cost-efficient and achieving a higher speed to market with the aim to create additional shareholder value.”

Group chief executive Sebastian Ebel said: “For the eighth time consecutive time, we are reporting double-digit growth in underlying EBIT. 

“In a market environment that remains challenging, this also demonstrates the strength and future viability of our business model. 

“We are growing profitably and are delivering what we have announced. We are a tourism group with strong companies and brands in hotels and cruises. Our tour operators with their own travel agencies provide access to 19 million customers. 

“By expanding our product portfolio, we are growing our customer base and want to open up new markets in Asia and America. 

“Tui is expanding its global presence and is therefore less dependent on vacation periods in northern, western, and central Europe.” 

He added: “We are a developer, investor and operator in the destinations, which makes us very different from our competitors.

“We are expanding our product portfolio and pushing ahead with digitalisation. An important step in our transformation is the further strengthening of our capital structure.”

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