Tui Group’s summer performance is set to close “in line with expectations” but a later booking pattern continues into the winter.
Overall summer bookings ended at 12.9 million – 91% of pre-pandemic 2019 levels – with the UK 4% ahead as the “most advanced” market.
The key peak departure months of July and August closed at 94% of summer 2019 levels for Europe’s largest travel company.
The UK, with 36% of the programme sold, is the most advanced booked region for the coming winter.
Tui revealed that flight disruption costs “remain at elevated levels” but continued to improve through the July to September period.
The group said in a trading update: “Our current assumption is for a winter programme close to normalised pre-pandemic levels with the option to flexibly adjust capacity in line with customer demand.
“We will leverage our flexible and integrated business model to ensure we provide our customers not only with the best winter holiday experience but also the assurance that TUI remains the best choice for holiday travel.
“Against this background, winter 2022-23 bookings stand at 78% of winter 2018/19 levels with the near departure months of November and December at 81%.
Tui re-confirmed its expectations of a return to “significant positive” underlying profit this financial year ending on September 30.
The Canary Islands, Balearics, Greece and Turkey were the most popular summer destinations.
“We are pleased to see flight disruption, predominately experienced in the UK throughout May and June, improve through Q4, although still at elevated levels,” Tui added.
Tui’s cruise business continued to recover in the summer peak, with occupancies building strongly and rates achieving 2019 levels.
“Winter 2022-23 occupancies are developing in line with our expectations at rates above 2019 levels,” the company added.
“Short-term bookings continue to represent a large proportion of overall bookings, however, the proportion of mid-term bookings is increasing as customer confidence returns.
The Tui Musement arm “significantly increased” the sale of tours and activities to 6.3 million in the year to date.
Outgoing chief executive Fritz Joussen and successor, current finance chief Sebastian Ebel, said in a joint statement: “In 2022, we see a strong travel summer almost at the same level as summer 2019.
“We confirm our guidance and will successfully close the 2022 financial year with a significantly positive underlying EBIT [earnings].
“In the UK, bookings continue to be well above pre- crisis levels at +4% and bookings in Germany and the Netherlands have also been above pre-crisis levels in recent weeks.
“The trend has been towards higher value or longer holidays with a higher overall holiday budget.
“This is encouraging and shows the current importance of holidays and travel experiences in the post-Corona era.
“Our strong brand, exclusive product portfolio with proprietary holiday experiences at hotels, clubs and cruise ships, and strong presence in destinations are competitive advantages that will continue to pay off and that we are building on.
“Through the efficiency programmes successfully implemented during the pandemic, we have also significantly and sustainably reduced our cost structure.
“We are leaner, more digital and more efficient. This gives us the freedom to invest in the customer and the holiday experience: Quality, service and sustainability are our focus.”