TUI summer bookings rise after capacity switch
TUI’s summer bookings from the UK are up 9% while revenue is up 8%, according to an interim report released today.
Its most significant growth has come from mainland Spain, the Balearics and the Canaries while bookings to Turkey remain ‘subdued’ it said.
The operator said it was continuing to grow its long-haul programme, with Mexico, Dominican Republic and Jamaica its most popular destinations. Costa Rica is new this year.
Bookings through its controlled channels account for 70% of summer 2016 bookings, up two percentage points, with its online channel accounts for 38% of bookings, up three percentage points.
For this winter, UK bookings are up 2% while average selling prices have risen 1% year on year.
To date, 93% of the winter programme has been sold, 1% point ahead of this time last year. Well performing destinations are Spain, the Canaries and Cape Verde.
TUI group chief executive Friedrich Joussen said: "Winter 2015/16 is closing out as expected, with 95% of our source market programme sold and increased revenue in all our major source markets.
"We remain pleased with our summer 2016 trading performance, with both revenue and bookings ahead of last year.
"The UK continues to demonstrate a strong bookings performance, up 9% on prior year.
"Hotels & Resorts are performing well overall, benefitting from increased demand in Spain, the Canaries, and long-haul.
"Cruise is delivering continued growth, driven by strong demand for Mein Schiff 5 which is due to be launched this July. Hotelbeds Group continues to deliver TTV growth and the disposal process remains on track.
"The Group has again demonstrated the flexibility of its business model and the ability to remix destination capacities to match demand and as a result demand and pricing has remained resilient overall despite the impact of geopolitical events.
"Our integrated model with our differentiated range of own accommodation content, combined with strong supplier relationships continue to give us a strong competitive position and sustainable earnings growth. We therefore remain well positioned to deliver underlying EBITA growth of at least 10% in financial year 2015/16."
TUI will deliver its first half interim results on May 11.
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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