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


Travel company Tui Group has more than half of its losses in the past six months and predicts a “strong travel summer” as customers continue to book long-awaited holidays. despite the pressures of the cost of living.

Europe’s largest holiday company says future bookings remain “non-stop high” as international travel recovers from the coronavirus pandemic and reaches 85% of the levels seen. for the summer of 2019, with the pace increasing even more over the past six weeks.

UK customers are leading the way in planning their holidays, with British market reservations 11% higher than in the summer of 2019.

Tui said nearly 1.9 million passengers had traveled with them in the past six months, almost 10 times the number over the same period last year.

The travel operator said holidaymakers also spend a lot of money while they are away, often opting for longer breaks and opting for a higher quality hotel or room.

Many customers are booking package trips, pushing the average price of Tui higher, including a 20% increase in summer breaks in 2022.

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

Tui Group chief executive, Fritz Joussen, said he expects the company to be able to make a profit again in the current financial year after a two-year crisis.

“Strong Easter business is already the first important sign. The high demand for travel and good business performance now confirms our predictions. 2022 will be a good financial year. have a strong summer of travel, ”he said.

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

Returning to more normal travel operations was not difficult for Tui.

Earlier this month it warned passengers that they would have to bring their own “plane picnics” to eat on their trips, after a lack of staff prevented it from serving food and drink to some. on its travels.

The company informed the plane’s passengers on Monday that it had “solved” its onboard catering problems and that they would once again “buy food and drink on the ship”.

Sign up for Business Today’s daily email or follow Guardian Business on Twitter at @BusinessDesk

Meanwhile, some customers have been using social media in recent days to complain about canceled or delayed flights. Some say they have been stuck in UK airports for hours.

On Monday, figures from Barclaycard showed that April was the fastest month for international travel spending since before the pandemic, with Britons taking advantage of the easing of Covid’s ban on booking foreign holidays.

The credit provider, which processes nearly half of all card transactions, said consumer spending grew 18.1% in April as airlines and travel agents had the most months since the pandemic began. more than two years ago.



Source link

Related post