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.