Tui Travel reports first-half profits on track

Tui Travel reports first-half profits on track

Tui Travel remains on course to raise full-year underlying operating profits by 7% to 10% on the back of a strong online performance.

Europe’s largest tour operating group reported today that winter trading is closing out as expected, with higher average selling prices across most key source markets.

Summer 2014 bookings are flat against tough comparatives last year, with strong pricing and approximately 45% of the programme sold, the company said.

Rising demand for unique holidays has continued and now accounts for 72% of mainstream summer bookings, up two percentage points.

Tui reported a strong web-based performance, with mainstream summer 2014 online bookings up by 
8%.

Chief executive Peter Long, giving a trading update this morning, said: “We are pleased with trading during the winter 2013/14 season, with most of our programmes now almost fully sold.

“We have once again successfully demonstrated the flexibility and resilience of our business model, enabling us to absorb the impacts of geopolitical events more effectively, including the ongoing turbulent political situation in Egypt.

“Summer 2014 trading is in line with expectations, with a strong online performance across mainstream, particularly in the UK and Germany.

“Demand for unique holidays also remains strong. Our customers are increasingly seeing the benefits of our digital transformation strategy, which in turn is driving conversion improvements from our new web platforms.

“We remain on track to deliver an H1 result broadly in line with last year, excluding the timing of Easter, and are confident of achieving a full-year performance in line with our target of growing underlying operating profit by 7 to 10%1.”

Tui Travel will announce its interim results for the six months ended March 31 on May 13.

Sourced from Travel Weekly

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