TUI admits sales are flat, but says profits will be up
TUI Travel announced today that it was confident its profits for the year would be up 7% to 10% as its winter 2013/14 programme is now almost fully sold and summer trading is "in line with expectations".
In a trading update for the first half of the year, to the end of March, the operator admitted summer bookings were flat year on year, but it said this was against tough comparatives, with strong pricing. The programme is 45% sold.
Chief executive Peter Long said: "We are pleased with trading during the winter 2013/14 season, with most of our programmes now almost fully sold.
"We have once again successfully demonstrated the flexibility and resilience of our business model enabling us to absorb the impacts of geopolitical events more effectively, including the ongoing turbulent political situation in Egypt.
"Summer 2014 trading is in line with expectations, with a strong online performance across Mainstream, particularly in the UK and Germany.
"Demand for unique holidays also remains strong. Our customers are increasingly seeing the benefits of our digital transformation strategy, which in turn is driving conversion improvements from our new web platforms."
"We remain on track to deliver an H1 (first half) result broadly in line with last year, excluding the timing of Easter, and are confident of achieving a full-year performance in line with our target of growing underlying operating profit by 7 to 10%."
The operator said holidays exclusive to TUI now accounted for 72% of its bookings, a two percentage point increase over last year.
Online bookings for summer holidays are up 8%, while value of sales made by its accommodation wholesaler for summer 2014 is up 33%.
TUI will announce its interim results for the six months ending on March 31 on May 13.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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