Tui Group's turnover hit by 'impact of terrorism'

For the period April to June Tui Group’s turnover totaled €4.6 billion, down by 5.7% year-on-year.

However overall the group improved its underlying operating result (Ebita) by 1.1% to €180 million as it “continues to transform to a hotel and cruises group” and said by the end of the financial year it plans to deliver at least 10% growth.

The group said excluding foreign exchange and the timing impact of Easter, its Ebita climbed by 14.1% to €203.3 million.

Tui said: “This was driven by the timing impact of Easter, a decline in bookings to North Africa and Turkey and the impact of terrorist attacks on the market environment, for instance in Belgium following the terror attack at Brussels airport.”

For the first nine months of the financial year, turnover declined by 0.9% to €11.39 billion.

“The summer 2016 source market programme is 87% sold to date, with turnover up 1%,” continued the statement.

“Demand has shifted to other profitable destinations and source market bookings excluding Turkey are up 8% overall.”

In tourism, “a good trading performance was delivered in particular by source market UK and Ireland, RIU hotels and Cruises”.

Tui Group chief executive Fritz Joussen said: “In financial year 2015-16, we are planning to deliver at least 10% growth in underlying Ebita year-on-year.

“Tui’s presence in more than 100 countries with our group’s own businesses and employees and our advanced transformation to a hotel and cruises group make Tui Group more flexible and resilient – and thus stronger.

“Today, we are in a better position to cushion geopolitical challenges but no one is immune to external impacts.

“However, it has been demonstrated that we have launched the right strategy, engage in active management and control, and have developed a sophisticated risk management system.”

UK and Ireland as a source market saw an increase in load factors and margins and “continued strong trading”.

The Nordics, by contrast, were impacted by the decline in demand to Turkey.

Overall the northern region (UK & Ireland, the Nordics, Canada and Russia) reported an underlying operating result of €88.1 million.

Tui Group’s cruise activities saw earnings growth of €10.1 million in the past quarter and the underlying operating result climbed to €29.4 million.

In July 2016, Tui Cruises was expanded to include Mein Schiff 5.