Tui Group reports strong first-half trading

Tui Group reports strong first-half trading

Tui Group today reported a strong first half performance with traditional winter losses cut by 20% to €272.6 million.

The combined Tui Travel/Tui AG business reported that 59% of its summer programme had been sold – in line with last year.

Bookings are developing strongly, up 2% year-on-year, with average selling prices up by 1%.

“We are particularly pleased with trading in the UK and Benelux,” Europe’s largest travel group said. “We continue to see booking growth of our unique offering, up 4% for all source markets.

“We also continue to increase the number of customers booked through our controlled channels, at 67% of bookings to date, up two percentage points.

“The online channel accounts for 36% of bookings, which equates to a booking increase of 11% on the prior year.”

A total of 62% of the UK programme has been sold with bookings up 6% based on a 4% increase in capacity. Online sales in the UK now account for half of summer bookings, up three percentage points.

UK bookings for unique holidays re up by 5% while the group reported strong demand for long haul holidays, with Jamaica up 22% and Mexico up 37%.

The Thomson and First Choice parent confirmed that it is “accelerated organisational change” to enable “fast and agile decision-making”.

The LateRooms accommodation-only business has been put up for sale as part of the process. LateRooms generated turnover of €31 million and a loss of €9 million in the half year to March 31.

The group said: “We will report on our tourism business and on other businesses going forward. The tourism business includes Northern Region (UK, Nordics, Canada, Russia), central region (Germany, Austria, Switzerland, Poland), eestern region (Belgium, Netherlands, France), hotels & resorts (including former Tui Travel hotels), Cruises (Tui Cruises, Hapag-Lloyd Kreuzfahrten) and other tourism (Corsair, tourism central costs and inbound services from financial year 2015/16).

“Other businesses include Hotelbeds group, which will be run as a standalone operation, and specialist group.

“The LateRooms Group will be reported as a discontinued operation as it is held for sale.

“All head office functions are being merged and we will start reporting against our corporate streamlining target in this segment.”

Joint chief executives, Friedrich Joussen and Peter Long, said they were confident in Tui Group having the ability to deliver at least 10% underlying earnings growth over the next three years.

They said:  “We are pleased with our first half operating result and overall summer 2015 trading, with continued strong demand for our unique holidays and a significant increase in online bookings.

“Hotels and resorts is performing well and cruises continues to grow, with the launch of Mein Schiff 4 this June and improved fleet performance by Hapag-Lloyd Kreuzfahrten.

“Our accommodation wholesaler is also delivering another year of double-digit total transaction value growth. All of this gives us confidence of delivering full year underlying operating profit growth of 10% to 15% in the current financial year.”

They added: “Our strategy as the world’s leading tourism business, building on a global brand with an attractive hotel portfolio, a growing fleet of cruise ships, and a modern and efficient leisure airline with direct access to over 20 million customers, is taking shape and is delivering results.

“We have implemented our new operational structure and are setting out our roadmap for growth. We are strongly committed to delivering improved customer experiences and increased shareholder value.

“Our new roadmap enables us to provide updated guidance for the future prospects of the group.”


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