Tui hits record revenue levels despite 4% price hike
Ilaria Grasso MacolaTui expects to increase its revenue and underlying profits by the end of September after shrinking its losses in a strong lates market.
In the three months to 31 March, the travel giant cut losses from €242.4 million (£208.4 million) to €188.7 million (£162.3 million) while posting its highest ever quarterly revenue of €3.6 billion (£3.1 billion).
Reconfirming its guidance for this financial year, on Wednesday (15 May) Tui said revenue could increase “by at least” 10% year-on-year by the end of September.
“Bookings across all our source markets were higher and notably both our key markets in the UK and Germany reported increased bookings levels compared to our last update as the season ended with average selling price ahead of winter 2022/23,” Tui said in a statement.
UK bookings were 11% higher compared to the same time last year, while in Germany they were 10% ahead of 2023 levels.
Looking at the summer season, Tui reported 60% of capacity had already been sold despite a 4% increase in prices.
Tui has pinned record revenue levels on strong performances in the hotels and resorts and cruise markets.
Both segments witnessed a significant growth driven by improved rates, higher bed nights and occupancies, Tui said.
Demand has also remained resilient in the airline market, with 2.8 million people travelling with Tui during the quarter at a load factor of 93%.
Short and medium-haul destinations, such as the Canaries and Egypt, remain popular while demand for Cape Verde continues to grow.
“We continue to closely monitor geopolitical events as they unfold, especially concerning the Middle East and around the Arabian Peninsula,” the company added.
“Our flexible business model allows us the option to adjust capacity from the eastern to western Mediterranean should there be a further escalation of the conflict in this region which has a significant and prolonged effect on customer demand.”
The results come three months after the majority of Tui shareholders decided to delist from the London Stock Exchange in favour of being solely present on the Frankfurt Stock Exchange.
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
