TUI pledges to return to ‘former strength’ after reporting strong summer sales

By Lisa James
10/05/2023
Home » TUI pledges to return to ‘former strength’ after reporting strong summer sales

TUI Group has reported ‘strong improvement year-on-year, with the strong booking momentum continuing into the summer season’ in its latest financial statement.

The travel giant’s half-year financial report for the six months from 1 October 2022 to 31 March 2023 reveals a second-quarter group revenue of €3.2bn – €1bn more than the previous year’s revenue of €2.1bn.

Summer booking levels are up by 13% on this time last year, with volumes in the last six weeks remaining strong.

TUI said: “Summer 2023 volumes in the last six weeks remain strong and are up 6% on 2019 levels accompanied by higher ASPs [average selling prices] emphasising the strength of customer demand and underlining the popularity of our product offering.”

Average spend is up 8% compared to last summer. TUI said: “This increase highlights customers’ continued willingness to prioritise spend on travel and experiences.”

Compared to summer 2019, the average selling price across the TUI Group is up 26%.

TUI added: “Easter bookings confirmed the strong customer demand across all our markets and indications for the summer season remain positive. 8.3m bookings have been taken to date, 3.6m more than at our Q1 2023 update. 55% of the programme sold which is +2%pts ahead of summer 2022 and broadly in line with summer 2019.”

Winter-sun destinations of Egypt and Cape Verde have grown in popularity with bookings up 22% and 3% compared to winter 2018/19 respectively, TUI added.

Meanwhile, Marella Cruises recorded a 95% occupancy rate for the second quarter, compared to 53% in the same period last year.

Average daily rate for Marella Cruises during Q2 was £181, up 16.4% year-on-year (Q2 2022: £156) and above the pre-pandemic level of £154.

CEO Sebastian Ebel said: “We have significantly increased our results in the second quarter, the completed winter season has developed in line with our expectations with good prices.

“The strong booking trend, especially in the last six weeks, and the significantly improved quarterly figures confirm our expectations.

“We expect a strong summer and a good 2023 financial year with significantly higher operating profit.

“Our strategic initiatives are taking effect, we have repaid the WSF aid [EU-approved COVID-rescue package] and are gearing everything towards profitable growth.

“We want to return to our former strength. That is our ambition and our promise to customers, employees, partners and shareholders.”

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