Europe’s biggest tour operator said while fewer United Kingdom travellers are choosing Turkey and North Africa for their holidays, overall United Kingdom revenue and bookings were up six per cent in the three months to June.
Advertisement
Rival Thomas Cook last month lowered its full-year profit forecast and said its underlying operating profit fell 93 percent in the third quarter as it worked to move holiday packages from the eastern to the western Mediterranean.
“We therefore remain confident of delivering at least 10 % growth in underlying EBITA in 2015/16, and reiterate our previous guidance of at least 10 % underlying EBITA CAGR over the three years to 2017/18”.
Many more northern Europeans were opting to holiday in Spain, where TUI is traditionally strong, and flying on lucrative long-haul packages across the Atlantic (Shanghai: 600558.SS – news), instead of holidaying in Turkey and North Africa, TUI said.
The average room price in Spain is up by a high single-digit percentage this summer, Joussen said.
A series of terrorist attacks undermined revenues at German-British travel giant TUI between April and June, the company said in results released on Thursday.
Since the vote in June the pound has weakened against the dollar and the euro by around 10 percent, making it more expensive for Britons to go overseas. “There’s been a very strong performance from the United Kingdom, bookings have risen very strongly”.
TUI reported third quarter underlying earnings before interest, tax and amortisation (EBITA) up 1 percent at 180 million euros ($201 million).
Advertisement
Revenue will rise by about 2 percent in the year ending September 30, down from an earlier prediction for growth of at least 3 percent, the Hanover, Germany-based company said Thursday in a presentation for analysts.
