Tui denies losing UK market share despite holding capacity flat

Tui has denied losing market share in the UK despite not increasing its tour operator capacity for this summer compared with last year.

Speaking as Tui reported results for the three months to March, the mid-point if its financial year, chief executive Sebastian Ebel insisted: “I would assume we are gaining market share [in the UK].”

Analysts suggested Tui had lost UK market share this week after On the Beach reported a 13% increase in sales year on year in the three months to March and an 18% increase “in the last five to six weeks”.

Ebel said he “almost expected” the analysts’ reaction given Tui had kept its ‘markets and airlines’, or tour operator, capacity flat year on year for the summer. But he said: “The percentage of growth with us is bigger with our dynamic packaging.

“We are putting dynamic packaging into the market. The more content we add, the bigger growth will be.”

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He argued: “There is no clear market share figure available. [But] I would assume we are growing market share again.”

Ebel said Tui was unaffected by any hesitancy to book among families or at the lower end of the market, saying: “Maybe we don’t get growth in the lower [end of the] market. [But] Tui is in the upper market and we see resilient demand.

“We focus on margin. It may be the lower end of the family market could be more challenging. People have a budget. If they can’t afford Spain, they go to Egypt or Cape Verde.”

He described “the broad economy” as “challenging”, saying: “You see and hear it everywhere. We focus on margins and growth in dynamic packaging. It is very important for us to have less volume but at good margins.”

Tui reported a loss of €306 million for the three months to March and a half-year loss of €392 million. But Ebel noted: “The second quarter is the least important quarter we have.”

The group reported the movement of Easter from March last year to late April this year had an estimated impact of €30 million on its results, pushing earnings for the Easter period from the second quarter in 2024 to the third quarter this year.

Ebel also noted the late Easter had delayed summer bookings as “momentum normally starts after Easter in many markets”.

He said: “After May 1 we have seen a significant uplift in momentum. It is important for us we didn’t grow our risk capacity so we can secure margins.”