A strong summer with increased levels of direct distribution means Tui Travel is “confident” of increasing annual profits by at least 11%.
High season summer trading in the UK saw revenues rise by 8%.
Almost a third (31%) of the group’s overall winter 2013/14 programme is sold with average selling prices up.
Bookings of ‘unique’ holidays in the UK, Nordics and Germany increased by 13%, 11% and 5% year-on-year respectively for summer 2013.
Direct distribution sales in the UK and Nordics for summer 2013 hit 91% (2012: 90%) and 89% (2012: 87%) respectively.
Online sales accounted for 48% (2012: 45%) in the UK and 70% (2012: 68%) in the Nordics.
Europe’s largest tour operating group said it remained confident in the flexibility and resilience of its business model which enables it to more effectively absorb the impacts of geopolitical events, including the current turbulent political situations in Egypt and Syria.
“Our continued strong performance demonstrates our strategy is delivering results and we are now confident of achieving FY13 underlying operating profit growth of at least 11% on a constant currency basis.” the company said.
“Demand for unique holidays during the Winter 2013/14 programme remains strong.
“This highlights the importance of not being a commodity-led business, especially given the uncertain environment in which we operate. Combining this with our flexibility, continued focus on rigorous business efficiency at all levels and refinement of aviation requirements and accommodation costs, means we are well positioned to continue to deliver on our five-year roadmap guidance of 7% to 10% annualised underlying operating profit growth.”
Giving a pre-close trading statement, chief executive Peter Long said: “We are very pleased with our trading during the summer 2013 high season, with most of our programmes now almost fully sold.
“Our strong performance in the market continues to be driven by increased customer demand for unique holidays and higher levels of direct distribution.
“As a result of this successful strategy, we are now confident of achieving full year underlying operating profit growth of at least 11% on a constant currency basis and are well positioned to continue to deliver on our five-year growth roadmap.”
Tui Travel will announce its preliminary results for the year ended September 30 on December 10.
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