Tui UK & Ireland To Recover Profits

Returning from a substantial deficit the prior year, Tui UK & Ireland increased underlying yearly profits to €71 million.

Tui UK & Ireland has seen a significant improvement in its annual earnings, jumping from a €102 million loss to a €71 million profit, marking a strong rebound. This surge was supported by a 19% increase in Tui Group cap, reaching 19.1 million in the year up to September, driven by a robust summer performance.

The overall revenue surpassed €20 billion for the first time, resulting in a doubling of underlying profits to €977 million. The company attributed this success to the robust demand for holidays throughout the year, although challenges such as heatwaves and forest fires in southern Europe affected summer bookings temporarily.

Winter bookings have risen by 11%, with prices up by 5% compared to the previous year, aligned with increased winter capacity. As for summer 2024 bookings, they're in early stages but already show promise, with a 13% increase over summer 2023 and higher average prices.

Looking ahead, Tui anticipates a minimum of 10% year-on-year revenue growth for 2024 and at least a 25% increase in underlying earnings.

CEO Sebastian Ebel expressed confidence, highlighting the company's return to profit, repayment of state loans, and reinvestment in growth. Ebel emphasized the significance of holidays in people's priorities and outlined strategies to expand market positions, offer new products, and maintain customer satisfaction. He acknowledged challenges in markets like the UK & Ireland but remained optimistic about growth and customer satisfaction improvements.

“We are working at a profit again; we have paid back the state loans. This has enabled us to invest in our own growth once more. And I am looking towards the new financial year with confidence. The economy may be under a few clouds, but people attach high priority to their holidays. We have a clear growth strategy.

“We are improving our market position in our traditional markets. We also want to offer new products to our regulars while winning over new customers in general. In markets where the competition is tougher, like UK & Ireland, we are walking taller all the time. We hope to score some points there and offer our customers a pleasant surprise”, he stated.

Discussing sustainability, Ebel criticized excessive regulations and costs imposed on travel, particularly with the pricing of package holidays. He highlighted Tui's commitment to reducing CO2 emissions and becoming a zero-emissions company by 2050 through measures like using sustainable aviation fuel, optimizing flight routes, and fleet renewal.

The company also announced changes in leadership, with David Burling stepping down after a successful year, passing responsibilities to David Schelp, who returns to Tui after prior management roles within the company.

Source: travelweekly.co.uk