TUI Travel cuts capacity further
TUI Travel has revealed further “significant†UK capacity cuts for the coming winter.
A nine per cent extra reduction in charter flying means that total winter capacity has been reduced by 28% against last winter.
Summer 2009 capacity has been reduced by 16% as the company predicted a “weaker earlier booking environmentâ€.
For winter, average charter holiday selling prices are up by 10% due to stronger pricing the past two months. The winter charter programme is half sold with nine per cent fewer holidays to sell.
But the company is seeing weaker demand for ski holidays, while adventure and expedition cruising are seeing positive like-for-like sales growth.
Volumes for next summer are 17% down on the same period last year but average selling prices are up 11%.
The total programme load factor is flat at 18% but there is 14% less to sell due to capacity reductions.
In a trading statement, TUI Travel said summer 2008 to the end of October had ended “in line†with its last update, with UK average charter selling prices up by 11%, sales up by seven per cent, passengers down four per cent and capacity down by six per cent.
“Despite a more challenging trading environment, we are satisfied with our current position across all our source markets and businesses,†a statement said.
“Within our mainstream source markets, through a combination of reducing fixed capacity. third party flying (which is 30% of all tour operator capacity) and uncommitted bed stock (which accounts for 80% of bed stock), we believe we can manage the current market conditions and continue to improve the profitability of the business.â€
*See linked TUI AG Q3 results story.
by Phil Davies
Phil Davies
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