Tui more than halves losses as it predicts ‘strong travel summer’

The travel company Tui Group more than halved its losses over the past six months and is predicting a “strong travel summer” as customers continue to book long-awaited holidays despite cost of living pressures.

Europe’s largest holiday company said future bookings remained “unabatedly high” as international travel bounced back from the coronavirus pandemic and had reached 85% of levels seen for the summer of 2019, with the pace picking up in particular over the past six weeks.

UK customers are leading the way in planning their getaways, with British market bookings 11% higher than they were in summer 2019.

Tui said almost 1.9 million passengers travelled with them over the past six months, almost 10 times as many as during the same period a year earlier.

The travel operator said holidaymakers were also spending more money while they were away, often opting for longer breaks and choosing a higher-quality hotel or room.

More customers were booking package tours, pushing Tui’s average prices higher, including a 20% increase on summer 2022 breaks.

The company reported a pre-tax loss of €130m (£111.1m) between October and the end of March. This compared with a €357m loss for the same period a year earlier, when international travel was severely restricted under coronavirus mitigation measures.

Tui Group’s chief executive, Fritz Joussen, said he expected the company to become profitable again in the current financial year after two years of crisis.

“The strong Easter business was already the first important indicator. The high demand for travel and the good business performance now confirm our forecasts. 2022 will be a good financial year with a strong travel summer,” he said.

However, the company sounded a note of caution amid the conflict in Ukraine and rising inflation, and said such uncertainties prevented it from issuing a specific financial forecast for the current financial year.

A return to more normal travel operations has not been without difficulties for Tui. Earlier this month, it warned passengers that they should bring their own “plane picnics” to eat on their flights, after staff shortages prevented it from serving food and drink on some of its journeys.

The company informed its airline passengers on Monday that it had “resolved” problems with its onboard catering and that they would once again be able “to purchase food and drinks onboard”.

Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

Meanwhile, some customers have taken to social media in recent days to complain about cancelled or delayed flights. Some said they had been stuck at UK airports for hours.

On Monday, figures from Barclaycard showed April was the strongest month for international travel spending since before the pandemic, with Britons taking advantage of the easing of Covid restrictions to book foreign holidays.

The credit provider, which processes almost half of all card transactions, said consumer spending grew 18.1% in April as airlines and travel agents had their best month since the onset of the pandemic more than two years ago.

Source link

Latest

Suspect in pro cyclist killing returns to Texas

A woman suspected in the fatal shooting of professional...

European Union to set up platform for Ukraine war reconstruction

The European Union will set up a reconstruction platform...

Where the Risks of Pregnancy Meet Abortion Laws and Health Care

As the United States has grappled with the unfolding...

Astronauts celebrate July 4 in space and pay honor to Houston

As usual, the pan-American celebrations of July 4 reached...

Pret returns to profitable operations with strongest sales outside London

The sandwich chain Pret a Manger has returned to profitable operations after two years in which it lost a cumulative £570m.Announcing trading figures for...

The people making a difference: the public health champion who met his hero, Simon Cowell

When Alfred Oyekoya had his first Covid vaccine in January last year, he wanted a photograph of the event. “I needed a picture of...

Number of pubs in England and Wales falls to record low

There are fewer pubs in England and Wales than ever before, according to analysis that sheds light on the ruinous impact of the coronavirus...