Tui Group reports strong UK performance and 'robust' summer trading

Tui Group reports strong UK performance and 'robust' summer trading

Tui Group today described summer 2015 trading as remaining “robust” with a strong performance from the UK.

Winter 2015/16 is trading “in line with expectations” and the travel giant said it was pleased with the early start to UK trading for summer 2016.

The operator’s programme to Tunisia remains off sale until March 2016 following this year’s beach massacre and following UK Foreign and Commonwealth Office. Tunisia accounted for around 3% of UK volumes last winter.

In a pre-close trading update, Tui Group said: “We are particularly pleased with the strong performance by the UK and continued margin improvement in the Nordics.

“Our growth strategy, as outlined in May 2015, is delivering results, supported by the resilience of our integrated business model.

“Based on current trading we are confident of delivering underlying operating profit growth of 12.5% to 15% in the current financial year and at least 10% underlying EBITA [earnings] over the next three years.”

Controlled distribution now accounts for 69% of bookings to date, up two percentage points on last year.

The group reported strong growth in online bookings, up 9% on the prior year and accounting for 39% of overall bookings, up three percentage points year-on-year.

Summer 2016 bookings from the UK are up 8% with average selling prices described as being broadly flat, reflecting the development of input costs, the Thomson and First Choice parent said.

“We have commenced the roll-out of our international concepts, including Thomson Family Life and Thomson Sensimar. We are also opening two new Sensatori resorts, in Dominican Republic and Rhodes, and in Thomson Cruises we have announced the launch of the Discovery, previously Splendour of the Seas,” the company said.

Joint chief executives, Friedrich Joussen and Peter Long, said: "Summer 2015 trading has remained robust since our last update.

“The season is now almost fully sold, with bookings and average selling prices ahead of the prior year.

“Winter 2015/16 is trading in line with our expectations and we have seen a good start to UK sales for summer 2016.

“We are pleased with the performance of our hotels and resorts business and cruise bookings continue to grow significantly, with the launch of Mein Schiff 4 in June 2015 and Mein Schiff 5 on sale for next year.

“Accommodation wholesaler is delivering double-digit total transaction value growth.

“Our growth strategy is delivering results, supported by the resilience of our integrated business model.”

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