Like others in the holiday business, Tui faces challenges as the cost of living crisis bites and people rein in their spending. But getting capacity back up to full whack is also a much higher priority for it: the drains on cash when you have planes and huge hotels to fill are enormous.” In some ways that’s what makes Tui more defensive – it has more to offer and plenty of cross-selling opportunities. Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, says: “Tui doesn’t just run flights – it has a much wider package holiday business. Its hotels and resorts business delivered a third consecutive quarter of positive underlying operating profit since the start of the pandemic.įor cruises, the company is hoping for a recovery in the second half of the year many ports were still closed earlier this year and its ships could sail only on limited routes. The group operated at 71% of pre-pandemic capacity in the period. Germans are also desperate to jet abroad, and summer travel bookings in Europe’s biggest economy are back at 2019 levels, or in some cases exceeding them, according to a recent poll by the data group GfK.Īt Tui, second-quarter revenues mushroomed to €2.1bn from €250m a year earlier, as demand ramped back up. Spain, Greece, Turkey and Mexico are popular destinations, with an all-inclusive holiday in Mexico not costing much more than a break in Greece, Tui says. They are splashing out on longer trips, and upgrading to four- or five-star hotels and better rooms. This summer, many families are taking their first trip abroad since the pandemic started. Tui has lots to offer, but the drain on cash when you have planes and big hotels to fill is enormous Sophie Lund-Yates, analyst Brits are particularly eager to travel: by mid-May more of us had bought Tui holidays than in the same period in 2019. In July and August (so far), it has flown all scheduled flights and claims it takes nine days, on average, to issue refunds.Īfter the May half-term cancellations, Tui said bookings had slowed across the industry – not surprising given the chaotic scenes at airports – but it still expects sales this summer to be close to pre-pandemic levels. But UK boss Andrew Flintham issued an apology to customers in June and promised to learn its lessons. Tui insists that it has cancelled fewer flights than some of its rivals, including easyJet and British Airways, which have scrapped thousands in recent months. A surge in demand for travel has caused chaos at airports in the UK and elsewhere in Europe, as they struggled to recruit baggage handlers and security staff after massive layoffs during the Covid pandemic.
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