TUI Reports Strong Q3 Performance, Expects Good Year
TUI Group recorded turnover growth of 16.41 percent to 4.94 billion euros (against 4.24 billion euros a year ago) with EBITA climbing 18.7 percent to 191.0 million euros (against 160.9 million euros) in Q3 2016/17, marking a positive performance for the first nine months of a financial year, the company announced on Thursday.
The Hannover-based group expects summer 2017 to continue in line with expectations and full-year turnover to exceed 3 percent growth.
“We expect a strong year,” said TUI Group CEO Fritz Joussen. “We are delivering growth and reiterating our guidance. We expect turnover growth of more than three percent, our underlying operating result is expected to grow by at least 10 percent in the full year.”
The company said its 100-destination-plus portfolio ensured its resilience as did foreseeing geopolitical changes and adapting to emerging demand. Turkey was replaced with alternative destinations including Spain, Greece and Italy, for long-haul travel and cruises.
TUI’s cruises segment also recorded growth improving its operating result in part by expanding to Greece and the Canaries to offset subdued demand to Turkey.
TUI is pure play tourism group – One brand
Moreover, in Q3 2016/17, TUI Group continued its transformation as a fully integrated tourism group.
“We successfully completed the sale of our Travelopia specialist tour operator business in Q3 and the remaining stake in Hapag-Lloyd AG in July 2017. This completes the transformation of the former diversified conglomerate to tourism group TUI,” Joussen said.
He added that the rebranding has also been very successful in all countries and has strengthened TUI both at the global and local levels. The UK will be the last market to roll out the rebranding in autumn 2017. The company will then consistently operate under the TUI brand in all source markets.
“Our clear focus on the high-growth and high-margin Hotels & Resorts and Cruises segments has proven to be the right strategy and has been very successful. The digitalisation of our businesses and services is progressing well. We are embracing new technologies such as Blockchain, and have already started to apply it in our hotel businesses. Moreover, our modern CRM systems enable us to gain a single view of the customer.”