Direct sales help TUI outperform the market
More direct sales are helping TUI Travel to outperform the market, with the travel giant confident of boosting annual profits by at least 11% this year.
Direct distribution sales in the UK and Nordics for summer 2013 reached 91% and 89% respectively, compared to 90% and 87% in 2012.
Online sales now account for 48% in the UK and 70% in the Nordics, compared to 45% and 68% last year.
In a trading update today, TUI said its strong summer 2013 had also been helped by higher demand for its ‘unique’ product.
Year-on-year, bookings of ‘unique’ holidays in the UK, Nordics and Germany increased by 13%, 11% and 5% respectively.
In the UK, overall revenues rose by 8%, and by 10% in the Nordics.
For winter 2013/14, TUI has sold approximately 31% of its overall mainstream programme, with average selling prices across all key source markets up year-on-year.
It said the winter programme in Egypt is being reduced significantly and capacity is being increased to other destinations.
"Demand for unique holidays during the winter 2013/14 programme remains strong," it said.
"This highlights the importance of not being a commodity-led business, especially given the uncertain environment in which we operate.
"Combining this with our flexibility, continued focus on rigorous business efficiency at all levels and refinement of aviation requirements and accommodation costs, means we are well positioned to continue to deliver on our five-year roadmap guidance of 7% to 10% annualised underlying operating profit growth."
The group will announce its preliminary results for the year ended September 30 on December 10.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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