TUI is reporting strong late bookings for the UK market, after sales dipped in June and July.
TUI Group CEO Sebastian Ebel (pictured) said UK bookings are strong for August, September and October, after slowing in the previous two months because of Euro 2024 and the Olympic Games.
Sebastian described prices in the UK as ‘OK’, but said the market is ‘very late’, with bookings coming in for the next week or even the next day.
UK bookings are currently up 5% on the same time last year. For winter 2024/25, 32% of the programme in the UK market has already been sold, with bookings at ‘the same high level as last year’, TUI said.
Overall, across its markets, TUI has seen summer 2024 bookings up 6% and average prices up 3%, with 88% of the programme sold. The average price would have been higher had TUI not taken on bookings from customers affected by the failure of Europe’s third biggest tour operator, FTI Touristik, in June. “We always want to have higher prices. This is just a mathematical effect. The additional FTI customers have a lower price,” Sebastian said.
Sebastian said he was in a ‘very good mood’, after TUI reported an increase in profits for the eighth consecutive quarter, while Chief Financial Officer Mathias Kiep said the results proved ‘holidays continue to be prioritised’.
Group revenue grew by 9% to a record €5.8 billion in Q3 2024, up from €5.3bn the previous year. In total, 5.8m customers travelled with TUI in the third quarter, up 4% year-on-year.
Sebastian said: “For the eighth time consecutive time, we are reporting double-digit growth in underlying EBIT [earnings before interest and tax]. 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.”
Overnight hotel and resorts stays were up 2%, with hotel occupancy up one percentage point to 80%. The averate rate per day rose 7% to €85.
Cruise occupancy rose three percentage points to 98%, with average fares up 7%. TUI Musement sold 2.8m experiences, up 2%, while the Markets & Airlines division doubled underlying EBIT to €16m.
Sebastian said TUI is continuing to be flexible in response to the Middle East conflict, with a broad portfolio to destinations that are currently popular, such as Turkey, Cape Verde, Zanzibar, Senegal and the Dominican Republic.
He said Lebanon, Jordan and Israel ‘are not really existing any more for major tourism’, adding that Egypt had been impacted for a short while, but bounced back after four weeks because ‘the product is really outstanding’ and ‘it’s a safe country’.
He added many FTI Touristik customers are still to re-book, as they have had to wait to be refunded.