TUI sells fewer packages but at higher prices
Thomson and First Choice parent TUI Travel saw customer numbers fall by 3.4% in the first quarter, but an increase in the average selling price meant turnover rose 1.3% to around €3.4 billion.
It said the rise in package prices was achieved through an increase in sales of exclusive product.
However, figures released at the AGM by TUI AG, which owns a majority stake in TUI Travel, show the travel giant’s seasonal loss increased year-on-year from €130 million to €147 million.
While the overall business performance was positive, this decline is exclusively attributable to recognition changes by TUI Travel, it said.
"Compared with the prior year reference period, TUI Travel updated the parameters used for the measurement of empty leg costs for inbound customer.
"Excluding this effect, which will balance out over the quarterly results and thus will not have a full-year impact, TUI Travel’s operating result would have been around €12 million up year-on-year."
Last month, TUI AG announced it had backed out of talks with TUI Travel about a possible merger of the two businesses (see earlier story).
After today’s AGM, Friedrich Joussen will take over as CEO of TUI AG from Dr Michael Frenzel, as announced last year.
Joussen has been a member of the Executive Board of TUI AG since October 2012.
The chairman of the Supervisory Board of TUI, Professor Dr Klaus Mangold, thanked the outgoing CEO for his commitment. "Dr Michael Frenzel has created Europe’s largest and strongest travel group by far.
"The transformation of the Group is his entrepreneurial life’s work."
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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