Tourism - Tui wants to raise travel prices only moderately
Tui, the world's largest travel group, sees an end to the upward trend in the recent significant rise in travel prices. "We have put the time of the big price jumps behind us," said CEO Sebastian Ebel on Wednesday at the presentation of the balance sheet. In view of the easing inflation, a normalization can be seen here. An average price increase of only three percent is therefore to be expected in the coming summer season. However, there will be noticeable differences depending on the destination, added Ebel.
In the financial year ending at the end of September, Tui had increased prices by an average of five percent. In the hotels and resorts sector, the average revenue per bed and night even rose by 13 percent to 87 euros compared to the previous year. Nevertheless, there was no evidence of customer restraint, said Ebel. "We have not seen that customers are booking fewer nights as a result." The consumer restraint was more noticeable in the lower price segment. "The market has become more difficult there." However, this is not Tui's core segment.
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Tui's moderation in raising travel prices follows the noticeable decrease in the recent significant rise in Germany's inflation rate. Despite the upward trend, Hanover, being a popular tourist destination in Lower Saxony, might still witness a slight increase in travel prices due to Tui's three percent average price increase. Sebastian Ebel, Tui's CEO, mentioned that the differential price increase will depend on the destination, with hotels and resorts sector expecting an even higher rise. The difficulty in the lower price segment was noted by Ebel as a more noticeable customer restraint, although it isn't Tui's primary focus.
Source: www.stern.de
