The world according to TUI

By | Category: Travel tips & opinions

.TUI has seen an increase in bookings to Turkey. In a CNBC interview I thought I heard the chief executive of UI say that growth had gone up 100% for Egypt so it is “expecting more.”

The tour operator, TUI released is results and outlook yesterday with bookings across the group up by 5.5%.

Whilst the bulk of the information given was across the group as a whole, the company did point out that business in the UK was strong. For the group the company was seeing a big upsurge in bookings for Turkey, North Africa (Egypt was particularly mentioned in a CNBC interview that the chief executive gave yesterday morning) and Greece.

The company also said that Cyprus, Croatia and Bulgaria saw “a sound increase in bookings” and that Spain was remaining strong. (is that their favourite word? And what does it actually mean?)

a beach in the Canary islands

The Canary Isles and the rest of Spain are still a strong holiday choice for TUI customers

The company plans to open five new hotels (they already own 380) and their locations might give a clue to further development. Among the five will be will be one in Bulgaria, one in Rhodes and the recently acquired Riu Palace Zanzibar. Can we expect to see more holidays on offer for east Africa in the future?

Cruise holidays are playing a big part in TUI growth and new ships will be added to their fleets in each of the next three years. Two of the brands, TUI Cruises and Marella Cruises have average occupancy levels above 99.5% whilst the third brand they own – Hapag Lloyd is at only 76.4% But the average rate a passenger pays per day on a Hapag Lloyd ship iss almost four times more than the other two. No wonder another Hapag Lloyd vessel has been approved.

TUI has a smile on its corporate face with its latest figures – their turnover is up 7%

Cruising is receiving more investment because the company says that the market is still growing amongst traditional groups ( I take this to mean over 50’s) but that, at the same time cruising is “becoming increasingly popular among families and younger people.”

What does all this mean to holidaymakers? It suggests that TUI is doing well and that there probably won’t be many bargains as we get closer to peak summer holiday time. There are unlikely to be any good deals for Spanish, Greek, Turkish or North African holidays although there might be some for Tunisia as the big tour operators move back into the country in a big way after the effective ban on British holidaymakers going there was lifted.

TUI seems to be confident that the cruise market will continue to grow but there are so many large rivals that pricing will probably remain competitive as the largest player, Carnival (which owns, amongst others) the P&O, Cunard, Carnival, Princess, Holland-America, Seabourn and Costa brands won’t want to lose market share.

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