Tui Sees Higher Revenues from Strong Summer Bookings

Tui, Europe’s largest tour operator, has announced record revenues for the past quarter, driven by “strong demand” for summer holidays. Despite facing economic uncertainty and delays in aircraft deliveries that have impacted other travel companies, Tui reported a 9% increase in group revenues, reaching 5.8 billion euros (£5 billion) for the three months ending in June. The company noted a 6% rise in summer bookings and a 3% increase in prices, alongside promising prospects for the upcoming winter season. The travel giant's success has been partly attributed to the bankruptcy of its German competitor, FTI, which has allowed Tui to capture a larger market share. Tui's group CEO, Sebastian Ebel, emphasized the company’s resilience, stating that this marks the eighth consecutive quarter of double-digit growth in underlying earnings before interest and tax (EBIT). Ebel highlighted Tui's unique position as a developer, investor, and operator in travel destinations, setting it apart from competitors. Industry expert Julie Palmer from Begbies Traynor remarked on Tui's robust performance, suggesting that the travel sector is proving more resilient than anticipated. While other companies have struggled with price increases leading to decreased demand, Tui has maintained strong customer interest, allowing its airline division to counterbalance rising input costs through improved pricing and higher volumes. Tui has also reaffirmed its financial guidance for the full year, indicating confidence in its ongoing transformation and digitalization efforts as it expands its product offerings.