Tui chief predicts Greece 'sell-out' and Easter capacity crunch

Tui Group chief executive Fritz Joussen said Greece was selling very well, due mainly to repeat bookings.

“Greece is over indexing by a factor of two,” he said. “Last year it was very popular and there seems to be a repeat. Greek islands, I would say, will be full and I also expect strong prices.”

However, Joussen said there was a trend towards long-haul and increased spend due to larger household savings accumulated during the pandemic.

“In all the countries we are active in, long-haul and far mid-haul is more attractive than short-haul. We see enormous amounts to the Caribbean." Cape Verde was another big seller, he said.

He added Easter would see supply issues: “When you look at some of the destinations, some are fully booked. In some of our hotels, it’s almost impossible.”

The UK had a “very strong” bookings pipeline,” he said. “It’s the only country where cumulative bookings are already ahead of the pre-crisis levels. As we speak, it is coming to 100% of pre-crisis levels.” 

In comparison, Germany, he said, was 20% below pre-pandemic sales levels. 

Tui Group’s summer 2022 sales overall are down 28% on pre-pandemic levels, but with capacity near previous levels and prices up 22% as consumers trade up to long-haul and more expensive holidays.

Joussen said the 22% price spike was “almost all in the mix, with “much more” long-haul than short.

“I have never seen such a price development,” he said. “It’s enormous volumes at very high prices. If that stays, it will be a brilliant summer.”

He predicted summer sales would be late. “It will be scarce; prices will remain very solid.”

Winter 2021/22 sales across all Tui markets were 58% of pre-pandemic levels, he said, with capacity 60-80% of 2018-2019, but with prices up 15%.

“Pricing is very strongly influenced by the mix,” Joussen said. “There’s a lot of long-haul and Caribbean."