TUI Says Winter Trading Surprisingly Encouraging

Tui Travel, the world’s biggest tour operator, informed that it had sold more summer holidays compared with last year and that early sales of winter holidays had been, so far, surprisingly encouraging. The noted jump in Tui Travel’s sales of holidays for the forthcoming winter is a result of taking advantage of the situation which these days the company’s rival, Thomas Cook Group, is in. Moreover Tui Travel’s officials have informed that the company will probably meet its full-year predictions because of the strong performance in the summer period and encouraging winter sales.

The growth in Tui Travel’s winter sales

Tui Travel, the owner of Thomson, First Choice and Gulliver Travel, has informed that it has fewer holidays trips left to sell compared with the same period last year. The company also noted that year-on-year summer holidays sales grew 6 percent in Northern Europe, 5 percent in Central Europe and roughly 2 percent in Western Europe.

TUI Travel, which is the UK’s largest tour operator by customer numbers, also informed that the British booking for the winter season grew by 2 percent over the year in spite of tough economic conditions and a year-on-year growth of 3 percent in the average selling price for winter vacations. Online sales continue to increase, accounting for approximately 41 percent of winter holidays booked.

The winter trading for the season 2012/2013 is surprisingly encouraging, given the fact that it is relatively early. In addition booked load factor is currently 31 percent and it is in line with Tui Travel’s expectations.

Other buoyant regions for Tui Travel include  the Nordic region, with bookings up roughly 4 percent in line with the capacity, and Germany with winter booking up around 7 percent. And, what is more, long-haul flights to escape tough conditions of the northern winter have become especially popular.

However the ongoing political turmoil in the Middle East and North Africa resulted in a 26 percent drop in bookings from France compared with the same period last year. Those regions are extremely popular within French citizens.

Tui Travel has been also affected negatively by the weak euro, the crisis in the eurozone and political and economical problems that have affected travel market in Greece as well.

Tui Travel’s Financial Results

Tui Travel is to announce its full-year results on the 4th of December. Peter Long, Chief Executive Officer at Tui Travel, noted: “We remain on track to meet our full-year expectations, with strong underlying trading offset by the impact of re-translation of fourth quarter eurozone earnings.” He added that the company’s strategy started delivering results despite challenging macroeconomic conditions.

Peel Hunt believes that Tui Travel will have a solid end to the trading year, with stable demand and prices in all core markets but France.

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Accor reports $2.5 billion loss, hopeful of a recovery by next year

Accor reports $2.5 billion loss, hopeful of a recovery by next year

Accor, Europe’s largest hotel chain, reported a $2.5 billion net loss in 2020 due to the deterioration in the industry linked to the sprea...
10 hours ago
Is the sun shining again on AMC stock?

Is the sun shining again on AMC stock?

As the old adage goes, good things come to those who wait. This might come true for movie theatre operator AMC Entertainment Holdings Inc. w...
12 hours ago
HSBC turns to Asia for future growth

HSBC turns to Asia for future growth

The bank’s maximum pre-tax benefits (90%) come from its Asian business. Chairman Mark Tucker and chief executive Noel Quinn are strugg...
1 day ago
Wells Fargo to forego asset management unit to private equity for $2.1 billion

Wells Fargo to forego asset management unit to private equity for $2.1 billion

Wells Fargo has been underperforming for the past few years and has undertaken cost-cutting and restructuring to improve its numbers. Wells ...
1 day ago
Lucid Motors partners with Churchill Capital IV to go public in SPAC mega deal

Lucid Motors partners with Churchill Capital IV to go public in SPAC mega deal

Lucid Motors, the luxury electric vehicle makers, will go public with a blank-check firm Churchill Capital IV Corp in a $24 billion deal, th...
1 day ago
Aviva hives off French unit to Aéma Groupe for $3.9 billion

Aviva hives off French unit to Aéma Groupe for $3.9 billion

UK’s leading insurer Aviva Plc has sold its French unit for 3.2 billion euros ($3.9 billion), marking the biggest deal under chief executi...
3 days ago