Tui reports strong trading for summer

Tui reports strong trading for summer

Tui Travel today announced a “very strong trading momentum” was  continuing into summer 2013.

Bookings from the UK and Nordic region are up by 9% with higher margins.

The Thomson and First Choice parent company said its cumulative market was up by four percentage points over the previous year in the UK.

The group’s winter programme ended strongly with improved margins and average selling prices across all key source markets.

Online sales now account for 40% of business in the UK, up 1% on last year.

In a trading update this morning, Tui said its business improvement programme was progressing to plan and traditional winter losses would be reduced.

Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 12% and 9% 
year-on-year respectively for summer 2013.

Direct distribution sales in the UK and Nordics for the summer have been maintained at last year’s level of 90% in the UK.

Tui online accommodation wholesaler continues to build a global leadership position with total transaction value up by 10% for the summer, driven by Latin America and Asia where TTV is up by 19%.

Tui said it remained “particularly pleased” with trading in the UK and Nordic source markets, where it will see double-digit revenue growth.

To date 46% of the overall mainstream summer programme has been sold. Trading remains in line with expectations in the accommodation wholesaler and specialist & activity sectors.

Chief executive Peter Long said: “We have a clear roadmap for growth built upon a deep understanding of our industry and customers.

“Our strong operational performance over winter means we will deliver reduced winter losses.

“This very strong trading has continued into Summer 2013, leaving us well placed to achieve a full-year performance towards the upper end of our growth targets.”


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