TUI sees trading in line with expectations as winter, summer revenues rise

Holiday tour operator TUI said current winter and summer 2017 were trading in line with expectations and reiterated its guidance of at least 10% growth in group underlying earnings before interest, tax and amortisation in 2016/17.

Winter and summer revenues were both up 9%, TUI said in a trading statement ahead of half year results due on May 15.

Higher winter revenue reflected growth in long haul destination holidays, particularly from Britons, and UK cruise as well as higher demand for the Canaries, mainland Spain and Cape Verde.

This was offset partly by lower demand for Turkey and Egypt, in particular from the Nordics, TUI said.

Summer revenues were up 9%, with packages 48% sold.

“Trading reflects growth in demand for destinations such as Greece, the Canaries and long haul, with a further shift away from Turkey (having already reduced significantly as a destination in prior year),” TUI said.

“Excluding Turkey, bookings are up 7% overall, with Germany up 8% and Nordics up 9%. UK revenue and selling price performance reflects continued growth in long haul and cruise as well as the impact of currency inflation for Euro based destinations.”

“Our balanced portfolio of markets and destinations, our focus on growth in own hotel and cruise brands and our strong balance sheet put us in a robust position, despite the impact of macroeconomic and geopolitical challenges in certain source markets and destinations.”

“We are continuing to deliver the transformation of the business, financed by our strong cash flows and the proceeds of disposals, which we believe will put us in an even stronger competitive position and create a less seasonal business for the long term.”