Published on Tuesday, February 13, 2018

TUI reports 'resilient' UK demand

TUI is reporting 'resilient' demand among UK customers and is pleased with bookings for summer 2018 so far.

Overall bookings for summer 2018 among UK customers are broadly in line with the prior year, down 1% with average selling prices up 3%.

The operator has described the outlook for summer 2018 as a whole as very good, saying 'trading performance fully matches our expectations',

Revenues are up 8.1% to £3.1 billion, with turnover up 9.1% when stripped of currency effects.  

Pre-tax losses have narrowed from €103.3 million (£91.8 million) to €72.5 million euros. The rebrand from Thomson to TUI in the UK cost the group €17 million in the fourth quarter.

CEO Fritz Joussen said the group is still aiming to deliver operating result growth of at least 10%.

"Hotels and cruises continue to grow. We are planning to expand TUI Destination Services as a business segment," said.

Joussen added: "Q1 2018 has shown that TUI is on track, we continue to grow.

"Following three consecutive years of double-digit earnings growth, we are aiming to deliver similarly strong growth in 2018. That is why we are delighted about our very good Q1 performance."

"Our strategy is successful. Our focus is on hotels and cruises. While we used to be a trading company, we have now become developers, investors, and operators. This makes TUI more profitable, and we now generate our earnings more evenly across 12 months.

"In the completed financial year, our hotels, cruise businesses and Destination Services delivered 59% of our underlying earnings.

"And we continue to invest in digitalisation: It helps us enhance our group's efficiency and offer our customers relevant, tailored products and services."


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