The future according to Thomas Cook and Tui

By | Category: Travel news
a Tenerife beach

Yet again, both companies say that Spanish destinations like Tenerife were big pullers in summer 2016…

This week, the two biggest tour operators in the UK came out with summer reviews and some thoughts on the future.

Thomas Cook revealed that bookings for summer 2016 were down 4% overall but, if you excluded Turkey, bookings were 8% higher than this time last year. They say we paid, on average, less for our holidays this year than last but that this was due to the growth of its seat-only business, which has lower average selling prices compared with package holidays. I think you can take that to mean that the average price of a package holiday did not go down.

You will be surprised to learn that the best-selling destinations were Spanish ones including the Balearic and Canary Islands. But holidays in the USA were strong as well as smaller destinations like Bulgaria and Cuba.

For the coming winter, the bland comment from the company was that “…sales for the winter season are in line with last year…” As for next summer, Thomas Cook says that customers are booking early in an effort to secure their first-choice destination and hotel. Nothing new there then. I could have written that line twenty years ago!

The company says that it is “…particularly proud of the improvements we’ve delivered in customer satisfaction…We know that the increased loyalty we get from happier customers is key to driving the future success of our business.”

...but Turkey didn't see more tourists. It saw a lot less

…but Turkey didn’t see more tourists. It saw a lot less

A day later came Tui’s figures. The company, which owns the Thomson, Fist Choice, Crystal, Austravel Falcon and JWT brands to name just a few said its profits would be up by 10% so does that mean that we have paid more for our holidays? That it doesn’t say but it does claim to have sold 98% of all its holidays that were on sale in the UK..

The cruises division has been strong over the summer it said and there has been a growth in long-haul holidays both back in the summer and in the coming winter which are up by 26%. The company specifically mentions Mexico, the Dominican Republic, Cuba and Sri Lanka as being strong. The Canaries, Cyprus and Cape Verde are also performing well.

Bookings from the UK for summer 2017 are already up on the same period last year.

Neither company says anything about the price of holidays next year or whether surcharges may come in if sterling drops against other currencies. They do say that they have hedged a lot of the currency exposure they wold face so, touch wood, holidays may be around the same price as this years.

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