- Tui continues to benefit from travel
Tui continues to benefit from customers' travel enthusiasm: Its hotel business, with brands like Riu, Tui Blue, and Robinson, has seen a significant increase, and cruises remain popular, allowing for higher prices. The average price has risen by three percent recently, according to the company. This increase was slightly below the previously mentioned four percent.
Short and medium-haul destinations, particularly in Spain, Greece, and Turkey, are currently in high demand. In the third quarter, up to the end of June, Tui carried 5.8 million guests - four percent more than the previous year. Overall, the company exceeded analysts' revenue and earnings expectations and described the quarter as a record.
Tui has already sold 13.3 million trips for the summer season, which is 4.3 million more than reported in May. Current business is encouraging, according to analyst Jaina Mistry from the investment firm Jefferies.
Although the pace of price increases has slowed slightly, the development is far from the weakness seen elsewhere in the sector, said analyst Richard Clarke from Bernstein Research. If there is any disappointment, it is that the booking pace has only slightly increased since the insolvency of rival tour operator FTI.
In the third quarter, Tui's revenue increased by 9.5 percent year-on-year to 5.8 billion euros. After adjusting for special effects, earnings before interest and taxes amounted to 231.9 million euros, which is almost 37 percent more than the previous year.
The collapse of the travel business due to the Corona pandemic brought Tui to the brink of bankruptcy in 2020. The German state saved the company from collapse with billions in aid. Since then, Tui has repaid the support from the Economic Stabilization Fund with fresh money from investors.
Tui's expansion in the travel industry extends beyond Europe: They also operate The Hanover International Airport in Germany, contributing to the country's tourism sector. Despite the recent mild decrease in price increase rates, Tui's German subsidiary, TUI Fly Germany, based at The Hanover International Airport, reported a strong fourth quarter.
