Demand for Turkey, North Africa and Greece boost bookings in Q3
TUI Group is seeing its current 2018 booking levels ahead of prior year despite prolonged hot summer, according to the company’s CEO Fritz Joussen.
“Early bookings and sustained growth at hotels and cruises limit the impact of the prolonged warm weather across Northern Europe,” the group’s CEO said during the presentation of the results for the April – June third quarter.
TUI’s summer bookings are up by 4 percent and source market turnover by 5 percent.
Joussen said that the high level of early bookings helped offset the impact of the sustained good weather in TUI’s key markets this summer.
“Spain remains the top destination. Turkey has caught up strongly and continues to record strong growth in bookings, along with North Africa and Greece. Destinations such as Cyprus, Croatia or Bulgaria also report good growth in bookings.”
Moreover, Joussen said that TUI’s hotels and cruises remain the Group’s growth pillars and continue to perform well.
“The Group’s Turkish and North African hotels are again recording a considerable increase in booking levels. High demand is also seen for Greece. TUI hotels in Spain continue to deliver good booking levels, in particular against strong prior-year comparatives.”
He added that TUI’s cruises segment was delivering higher rates and better earnings whilst at the same time significantly increasing capacity.
“A good third quarter, very good nine-month results,” Joussen said.
In the April – June 2018 third quarter, TUI increased turnover by 5 percent to over 5 billion euros and improved EBITA (underlying operating profits) by 2.4 percent to 227 million euros.
“Our sector earns its profits in the fourth quarter. We have delivered a profitable operating result already after nine months for the second year in a row,” Joussen said.
Over the first nine months of the business year (October 1, 2017 to June 10, 2018), TUI’s turnover grew by 6.3 percent to 11.83 billion euros.
“For the full year, we expect to deliver double-digit earnings growth for the fourth consecutive time… TUI is in good health, we are flexible, deliver a strong operational performance and invest in our growth segments while maintaining our cost discipline,” TUI’s CEO said.