TUI reports ‘promising summer’ in latest financial results

By Lisa James
15/05/2024
Home » TUI reports ‘promising summer’ in latest financial results

TUI Group is reporting high travel demand, a strong finish to winter 2023/4 and promising bookings for summer 2024, with higher average prices.

Group revenue grew by 16% to a record €3.6 billion in the second financial quarter of 2024, compared to €3.2bn in the previous year.

Underlying Group earnings before interest and taxes (EBIT) in the second financial quarter, which is typically weaker, improved by €54m to -€189m.

TUI’s Hotels & Resorts and Cruises divisions boosted underlying EBIT by €91m to €171m in Q2 2024.

TUI ended the winter 2023/24 season with a strong lates market and with an overall significant increase in bookings of 9% and average prices 3% higher.

The weather also motivated many last-minute travellers to make winter bookings, TUI said. Demand was strongest for short and medium-haul destinations, with the Canary Islands and Egypt being the most popular destinations and demand for Cabo Verde increasing.

Average prices for summer are 4% higher than the previous year, with 60% of the programme sold. TUI’s UK summer bookings are 3% higher, with 65% of the season sold.

Medium and short-haul destinations are driving bookings for the summer, with Greece, Turkey and the Balearic Islands again the most popular destinations.

TUI Group CEO Sebastian Ebel: “Travelling is very popular with people. We see trends that will further strengthen this in the future: experiences are becoming more important than possessions, and the middle classes are growing in many parts of the world.

“The first two quarters of the financial year were very successful in operational terms. It clearly demonstrates the resilience of our business model and strategy and emphasises our strength in growing profitably in a dynamic market environment.

“We are seeing high demand for package holidays, in particular, which we are producing more and more flexibly and dynamically and which continue to offer the highest level of protection for our customers. 80 per cent of our package holiday guests use our app, which we are developing into a fully comprehensive travel companion.

“The digital services go hand in hand with our successful bricks-and-mortar sales organisation, which continues to play an important role. Travel agencies stand for high-quality advice, service quality and higher contribution margins.

“The significant increase in guests’ willingness to recommend TUI to others and the high customer satisfaction ratings in the first six months of the financial year show that we are on the right track.”

“We are aware of the ongoing challenges in the geopolitical environment and confirm our expectations for the full year.”

He said TUI aims to increase revenue by at least 10% for the full year and underlying operating earnings by at least 25%.

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