British holidaymakers are paying almost a quarter more for their Tui winter holidays than they did before the pandemic.
Prices are up by 23% for the season from October 2022 to March 2023 compared with the same period in 2018-19.
However, British customers appear undeterred by the rising costs as the UK remains Tui Group’s most advanced booked market, with sales 5% ahead of the same period in 2018-19.
Overall, across Europe, winter prices are up by 7% compared to winter 2021-22, which will help to “soften” the impact of foreign exchange volatility and inflation, said the group.
It plans to operate a programme for winter 2022-23 close to pre-pandemic levels, despite the war in Ukraine and the lingering effect of the pandemic which “continue to drive market uncertainties”.
Chief executive Sebastian Ebel said customers are “more cautious” and are making decisions about where to book based on their budgets.
More: Tui summer carryings reach 93% of pre-pandemic levels
Tui Group agrees to pay back €730m in Covid state aid
New Tui chief sets out plans for ‘significant and profitable growth’
For example, if their allotted budget is not enough for Spain they may go to Turkey, or if they cannot afford the Dominican Republic, they will opt for Egypt, he explained.
Also, last year saw more customers booking longer durations or hotels with higher star ratings than usual, because they had missed out during the pandemic.
Now the group expects to see “normalisation” to pre-Covid patterns, he added.
Ebel made his comments as Tui Group reported summer customer numbers reached 13.7 million – 93% of levels achieved before the pandemic – and annual pre-tax losses were trimmed to €146 million.
In its results statement for the year to September 30, the group said summer 2022 “closed out strongly” with 13.7 million customers.
He said the group looking beyond its traditional core package holiday customers to woo more “travelistas” and “energised adventurers” in 2023.
Attracting more new and existing customers with fresh products is a priority as he seeks to increase Tui’s overall market share.
Offering more options for dynamic packaging is part of this strategy, he added, although denied it was a response to easyJet holidays or other competitors in the UK market.
Pictured: Mathias Kiep (left), chief financial officer, and Sebastian Ebel, chief executive, at the Tui Group presentation of 2022 results.