Despite higher prices, TUI anticipates a strong summer season in 2024, buoyed by robust Q2 results and increased travel demand.
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TUI
Berlin: Europe’s largest tour operator, TUI, expressed confidence in the upcoming summer season despite higher prices, following a robust performance in the typically weak winter period.
“Travelling remains a popular choice for people. We are witnessing trends that will only bolster this in the future,” affirmed CEO Sebastian Ebel.
Strong Summer Demand Expected
Travel firms are optimistic that the summer season 2024 will surpass pre-pandemic levels.
This optimism persists despite several challenges, including economic uncertainty, delays in plane deliveries from manufacturers, and rising jet fuel prices.
Key Highlights from TUI’s Report
| Metric | Q2 Performance | Comparison |
|---|---|---|
| Summer Program Sold | 60% | In line with the previous year |
| Average Price Increase | 4% | |
| Operating Loss (Jan-Mar) | 189 million euros ($204.52 million) | Better than LSEG’s consensus of 246 million euros |
| Revenue Growth | 16%, reaching 3.6 billion euros | Record high |
| 2024 Revenue Guidance | 10% increase | |
| 2024 Operating Profit Guidance | 25% increase |
Winter Performance Boosts Confidence
The Hanover-based TUI group, which recently switched its listing from London to Frankfurt, reported that milder winter weather increased last-minute bookings during the second quarter, contributing to overall revenue growth.
TUI’s diverse operations, including holidays, hotels, cruises, and an airline, are set to benefit from the anticipated travel boom.
The company aims for a 10% revenue increase and a 25% operating profit rise in 2024.
Financial Overview
- Operating Loss: TUI narrowed its operating loss in the January-March period to 189 million euros ($204.52 million), better than the expected 246 million euros loss.
- Revenue: The company reported a 16% increase in revenue, hitting a record 3.6 billion euros for the quarter.
The positive trends in travel demand and the company’s strategic moves, such as the stock market listing change, underscore TUI’s optimistic outlook for the summer season.
Despite challenges, the company remains hopeful that the upcoming months will see strong travel activity, buoyed by consumer enthusiasm and strategic planning.
Conclusion
TUI’s strong Q2 performance and positive outlook for the summer season reflect the travel industry’s resilience.
If the company adapts to market conditions and consumer trends, it can achieve its ambitious targets for 2024.
($1 = 0.9241 euros)
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