Tui Group summer bookings are projected to end at 96% of pre-pandemic levels with business in the final month of the season well ahead of last year.
Bookings from the UK are 4% ahead of summer 2019 levels, with winter levels also up.
The positive momentum continuing into the winter is being supported by higher prices as Europe’s largest travel group said it was “well positioned” to achieve financial results targets for the current financial year.
However, the performance would have been better without the impact of the wildfires in Rhodes.
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In a pre-close trading update, Tui reported a 5% rise in summer bookings to 13.7 million, including 1.1 million addition bookings taken since its last quarterly update on August 9.
Demand in the final month of season is 8% ahead of summer 2022 with the total programme 95% sold, leading to season extensions in Greece and Turkey.
The winter season from the UK is 38% sold – the most advanced region booked on a larger programme. Bookings are up 8% with average selling prices up 3% against winter 2022-23.
Overall winter capacity is up by 11% year-on-year, with 1.5 million bookings already taken – a rise of 15%.
Demand in the UK “is enhanced by our increased dynamic product offering, providing more flexibility and choice for our customers”.
Short and medium-haul destinations including the Canaries, Egypt and Cape Verde are set to form a key part of the upcoming winter programme with Mexico, Thailand and the Dominican Republic expected to be significant long-haul destinations.
The group revealed mid-term 2025-26 ambitions for underlying annual earnings [EBIT] to “significantly build” on €1.2 billion.
Tui said: “Our traditional short- and medium-haul offering to Greece, Turkey, the Canaries, and the Balearics, continue to prove popular with our customers, with all key destinations benefiting from higher demand against summer 2022.
“We have seen strong demand in the final weeks of the summer season which traditionally runs to the end of October.
“As a consequence, we recently announced the extension of the season into November in particular to Turkey and Greece, to cover demand outside the traditional summer season. It again highlights the benefit of our integrated business model and our ability to react quickly to changes in demand.”
The poorer summer weather in source markets has boosted bookings and demand for Tui’s cruises across a fleet of 16 ships in the autumn at higher rates.
“The segment continues its strong post-pandemic recovery,” Tui said.
Chief executive Sebastian Ebel added: “We are seeing a strong close to the summer season and we are on course to achieve results in line with expectations.
“This is particularly evident in our main markets Germany where bookings year-on-year are +10% higher and UK where bookings are in line with an already strong prior year summer season and +4% ahead of pre-pandemic levels.
“Indeed, had it not been for the various events during the last few months which were outside of our control, not least the wildfires on Rhodes, we would have performed ahead of expectations.
“Tui is well positioned as we head into the new financial year. The positive trading momentum is continuing, and I am very optimistic for the coming winter and summer seasons.
“For winter 2023-24, we are still at an early booking stage, but the increase of +15% in bookings compared to the previous year, is a very encouraging signal.
“We have a clear strategy for the coming years introducing new products, growing our customer base and developing our market share, supported by the Tui customer ecosystem.
“We will update the market on our latest strategic initiatives and progress made when we announce our full year results in December.”
Full year results for there 12 months to September 30 are due to be published on December 6.
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