TUI’s UK business grows after Thomson commission cuts
Thomson’s parent TUI grew its UK business in the first three months of this year after the operator cut commission to agents on January 1.
According to its first quarter results, TUI’s Northern Europe business, which includes the UK, Ireland, Nordic countries, Thomsonfly and Britannia Airways, increased turnover from €895 million in 2005 to €915 million this year.
The number of customers for the region was up from 1.18 million in 2005 to 1.21 million.
Growth was recorded both in the UK and the Nordic countries.
“Following a slow start, the UK has seen a steady
improvement in bookings,” said the results announcement.
TUI as a whole reported significant turnover growth in the quarter due to the expansion of its shipping business. Group turnover reached €4.48 billion – up 25.1% from last year’s €3.58 billion.
Earnings by divisions improved 73.4% to €-45 million compared to the previous year’s €-169 million. Due to the seasonal nature of the tourism business, the first quarter regularly closes at negative results.
More details of the UK’s first quarter results are due to be announced at the TUI AGM, which takes place tomorrow (Wednesday May 10).
By Bev Fearis
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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